Russian President Putin recently announced Sanctions against the European Union and the United States whereby Russia would not import Food from those Nations. Instead, Moscow will arrange to replace that Food through imports from Turkey, Latin America and former Soviet Socialist Republics. Well, I guess that you can say whatever you wish when you control the Media which will be advising the Russian People why its food stores will have even less and less agricultural necessities to purchase.
In prior years, Ukraine was known as the Breadbasket of the Soviet Union. So, if we assume that Ukraine, the E.U. and, to a lesser extent, the U.S. are no longer primary suppliers of Russia’s edible needs, the amount available for Russian tables will diminish and the cost will skyrocket. Thus, the already high rate of Inflation in Russia could skyrocket. That will further impede the Russian Economy. Wine and a French warship, however, were left off the Sanctions List.
If Turkey still has any hope of joining the E.U., after taking a sharp turn toward Islamic Fundamentalism over the past several years, it’s abiding by the E.U. Sanctions on Russia will be watched very closely. Agricultural products from Latin America (perhaps most notably Argentina and Brazil) would have longer shipping times and costs. Also, there just aren’t too many of the former Soviet Socialist Republics that remain loyal to Russia. So, Vladimir Putin is mostly talking to his own People, but not realistically.
The Russian Army has recently re-deployed a Force of some 20,000 soldiers away from its boarder with Eastern Ukraine. Also, it is becoming apparent that the Pro-Russia Militia, which has been fighting for independence in Eastern Ukraine, has lost all hope of Russia coming to its aid. So, two points come to mind: perhaps the Economic Sanctions on Russia are finally getting Moscow’s attention, causing it to leave the border; and, the Separatists might now realize that fighting for Independence is one thing; but, actually Governing is something else. Perhaps that’s not something that they are prepared to do. Stay tuned!