Impact of sanctions on agricultural policy in European Union and Russia

In the springtime of 2014 the USA, the EU, some other countries and international organizations applied sanctions against Russia. This process started after joining of Crimea to the Russian Federation. In its tern Russia imposed retaliatory sanctions, which banned import of some agricultural products, raw materials and food products from the United States of America, the European Union, Canada, Australia and Norway. Authors analyzed international trade of the Russian Federation with the European Union changing for the sanctions period in comparing with previous one, forecasting on 2016. There is also evaluation of structure changing of Russian food products import from Europe in the article. The ban effected 4,2% of total EU agri-food exports. The European Commission's measures for the compensation, storage and promotion of sales market diversification for agricultural products are presented. New destinations and alternative markets for European agri-food export are considered. Impact of sanctions on the food products supply in Russia is monitored according to the internal market price changing. To the end of 2015 in comparing with 2013 the most suffered for embargo production items became frozen fish (with rising of the price on 52%), sunflower oil (on 43%), apples (on 38%), butter and meet of cattle (on 29%). While inflation rate in Russia was 11,36% and 12,91% for 2014 and 2015 years. After all authors reviewed priorities of contemporary agricultural policy of Russia. The main is focus on internal resources of agricultural development, which means broad federal support of agriculture. As a result Russia can become a strong supplier of agricultural and food products on the world market.