RUSSIAN AGROFOOD BAN BOUND TO TRIGGER STRONG LOBBYING FOR EU COMPENSATION

Russia remains the EU's second most important food export market after the U.S.A. In 2012, the value of food and drinks exported from the EU to Russia was close to € 9 billion. Russia is in fact the No. 1 export market for some EU Member States. A large part of the EU food and drink exports to Russia come from Germany, the Netherlands, France and Poland, which means these countries are likely to be more affected

EU growers from Poland, to Germany, to Belgium, to Spain, to France, to Greece are going to lobby the EU Commission for compensation for the loss of earnings as a result of the Russian ban on agricultural products.

EU Agriculture Ministers will have to decide whether growers can recoup from Russian ban and whether compensation will adequately reflect the losses experienced by Member States’ and how to make it accessible to affected growers.

Expect affected EU member states to haggle about the amount of such compensation. EU farmers have a strong lobby, both in their home nations and in Brussels, and about 35 per cent of the entire EU budget already flows to them in the form of subsidies and compensation payments.