Russia may negotiate price limits with domestic food producers

[dipsydoodle]

Source: Reuters

(Reuters) - Russia may negotiate a price control agreement with domestic food producers to prevent speculative price hikes that would affect inflation after it banned half its agricultural imports from the West, the agriculture ministry said late on Friday.

Russia banned meat, fish, dairy, fruit and vegetables imports from the United States, the European Union's 28 member states, non-EU member Norway, Canada, and Australia on Thursday in retaliation against sanctions over the Ukraine crisis.

Agriculture Minister Nikolai Fyodorov has acknowledged the ban would cause a short-term spike in inflation, but said he saw no danger in the medium or long term as Russia started to look elsewhere for substitute imports.

The ministry, referring to a meeting with food sector unions, said: "Participants at the meeting discussed the possibility of signing with producers and agricultural products processors an agreement on ... price policy, to prevent any speculative rises in prices for agricultural products."

Read more: http://www.reuters.com/article/2014/08/09/us-ukraine-crisis-russia-food-prices-idUSKBN0G908M20140809

[7962]

1. So the sanctions ARE working. Against his own people.

Hey they can always just import more from China. They're stuff is really safe!
Let the price controls begin and watch the black market flourish. It will be just like the old Soviet Union again, just like Vlad wants!

[Fred Sanders]

2. So world free trade may not be a good thing for some countries..local farmers will benefit?

[ChairmanAgnostic]

3. Not with the local KGB enforcing price controls on your products, while you get the

"real" price out the back door.

If there was any better way to destroy his economy, I cannot think of one. Artificial shortages, low payments, a lack of necessary products needed to make, grow and feed other food sources. and a b under mentality - just watch how soon a hoarding economy begins. Which will drive the shortages ever higher.

This little economic gambit by Putin will cost his economy billions. Many billions, perhaps more than what our little Iraqi invasion cost us.