The Analytical Center expert Elena Razumova talked live on RBC-TV about the impact that the Russian counter-sanctions restricting the imports of European goods into Russia had on domestic producers. "In whole, the majority of Russian producers gained from the counter-sanctions in one way or another, first of all it was poultry and pork producers that reaped real benefits," the analyst said.
Competitive Advantages to Disappear Soon if Sanctions Are Lifted
"Dairy producers also got the advantages because both the retail prices and the prices charged by producers started rising very fast after the counter-sanctions were imposed. Suppliers of some types of vegetables benefited to some extent as well. So at large, the Russian agricultural sector gained a lot from this situation: new markets, new cash flows," the expert said.
Answering a question about what had a greater impact on the development of agriculture in Russia, the closing of the market to foreign suppliers or the steep depreciation of the ruble, the analyst replied that both factors influenced simultaneously, but the groceries embargo had a greater impact.
As for the development of agricultural equipment, it is an area where actual progress is difficult to estimate, because despite the support measures that were implemented, manufacture of agricultural equipment in Russia actually declined in 2015, Ms. Razumova noted. "At the same time, we saw an increase in the production of cattle feed and vaccines. But with agricultural equipment, both financial performance and output declined," the expert summed up.
Assessing the effect of the counter-sanctions, Ms. Razumova said it was "more negative rather than positive", because they resulted in such negative developments in the market as counterfeit products in the dairy market and a drop in both foreign and Russian investments. "If the sanctions are lifted, our competitive advantages will disappear soon," Ms. Razumova is convinced.