Russia: Trade Impact of Ban on Fishery Sector
On August 6, 2014, Russian President Vladimir Putin signed a decree banning a list of agricultural products from the United States, Canada, European Union, Australia, and Norway as a result of the implementation of economic sanctions against Russia due to events in the region. The Government of Russia (GOR) has stated that domestic demand for the banned fish will mostly be met by increasing shipments from the Far East, as well as other markets such as Chile, China, Faroe Island and Ecuador. The United States’ share of Russia’s total imports of fish and seafood is about three percent. The U.S. is one of the largest suppliers of frozen salmon roe to the Russian market. The share of U.S. fish and seafood products ready for consumption that were not affected by the ban (HTS 1605, 1604), is estimated at $900,000. Experts estimate that the Russian fish and seafood industry will not be able to make up for the gap in the near term. Businesses expect prices for most affected species, such as salmon and premium seafood, will increase approximately 20-30 percent in the near term.
