The extension of the food embargo in response to US and EU sanctions against the Russian Federation no longer affects the prices of goods, its effect was exhausted at the beginning of 2016, senior analyst of the sovereign ratings and forecasting of the Analytical Credit Rating Agency Vasilisa Baranova told RIA Novosti. Earlier, Russian President Vladimir Putin extended the food embargo imposed in response to sanctions against the Russian Federation for a year - until December 31, 2020, the corresponding decree was published on the official legal information portal.
"According to our calculations, the embargo effect on prices was up to the beginning of 2016, that is, now it no longer affects them. As follows from our baseline forecast, inflation by the end of this year will be 4.8% year-on-year, and food is 4.3% year-on-year," Baranova noted. The analyst believes that the introduction of an embargo in 2014 led to an increase in prices and "had a negative impact on the real incomes of the population and a positive effect on the agricultural sector."
"In general, the effect of the food embargo on the real incomes of the population and the gross domestic product has been declining since its introduction," Baranova continued. "The food embargo led to a decrease in the share of food imports from countries with a ban on the import of agricultural products from 41% to 21% from 2013 to 2018," she added.
Source: dairynews.ru.
