First BRICS Bank, Now BRICS Food Bank

Tyler Durden's picture




 

Despite President Obama's dictating that Russia is increasingly "isolated," it appears they have found a whole new set of friends to play with in the global trade sandpit. In retaliation to Western sanctions, Putin yesterday unveiled a total food import ban from all sanctioning nations, and, just as the BRICS created their own 'IMF-lite' away from Washington's prying eyes, Russia plans to substitute banned goods with not just domestic supplies but imports from Latin America, China, and several other nations. Agriculture Minister Nikolai Fedorov said "no food shortages are expected," but more isolation for the West...

 

Russia is already turning away trucks at the border and cancelling orders (as FruitNet reports)

Catalan producer association Afrucat is urging its members not to send lorries to Russia until the situation regarding the ban on EU imports has been fully clarified, following reports that trucks laden with fruits and vegetables are already being refused entry at border crossings.

 

“Initially it seemed that the Russian government was making its decision on a product-by-product and country-by-country basis after discussions with its producer associations to ascertain the possibility of meeting demand with local production, but as the morning wore on, a growing number of Russian importers starting cancelling orders – first as a precaution and subsequently as it was confirmed that trucks would be turned away at the border,” Afrucat said in a statement.

As Bloomberg reports,

Russia plans to substitute banned goods with domestical products, supplies from Latin America, China, North Africa, Israel, Turkey, former Soviet allies, Agriculture Minister Nikolai Fedorov tells reporters in Moscow.

 

Russia may revise or narrow food import restrictions, not planning to widen them yet

 

Restrictions could have been tougher; “That’s a necessary measure, we were forced to make these decisions”

 

No mid-term pressure on inflation expected; import restrictions may lead to short-term, “emotional” CPI jump

 

No food shortages expected

 

Russia should spend additional 137b rubles in 3-4 yrs on agricultural industry, according to ministry est.

 

Country ready to defend position on food ban in WTO

 

Food ban doesn’t apply to Switzerland

Russians won’t feel dramatic changes, incl. in restaurants; “bon appetit” to all, Fedorov says

  • Russia can replace meat imports from U.S., EU, Canada, Australia with supplies from Brazil, Uruguay, Paraguay, Argentina, Belarus
  • Russia will try to replace Norwegian red fish with domestic supplies, shipments from other countries
  • Country consumes 2.345m mt of beef/yr, incl. 59kt from 5 banned suppliers
  • Pork: consumption 3.415m t/yr total vs 450kt from 5 sanctioned suppliers
  • Poultry: 4.28m t/yr total vs 338kt from banned countries
  • Fish: 3.44m t/yr total vs 457kt from banned countries
  • Dairy: ~36m t/yr total vs 459kt; cheese, butter, powdered milk can be imported from South America, New Zealand
  • Vegetables: 16m t/yr vs 900kt; subsitutions possible from Turkey, Argentina, Chile, China, Uzbekistan, Azerbaijan
  • Fruits and berries: 11m t/yr vs 1.6m t; apples, pears can be imported from Argentina, Chile, China, Serbia; cherry, apricots, peaches from Uzbekistan, Azerbaijan, Armenia, Israel, Turkey, Iran; citrus from Egypt, Morocco, Turkey, South Africa

*  *  *

Seems like once again, US sanctions have forced retaliation from Russia that economically impacts the US (and European) economies - just like Jack Lew said it would not...

*  *  *

And tonight:

  • *RUSSIA BAN ON U.S. BEEF SEEN POSITIVE FOR BRAZIL EXPORTS: ABIEC
  • *RUSSIA ALLOWS BEEF IMPORTS FROM 27 BRAZIL PLANTS: ABIEC
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Thu, 08/07/2014 - 18:14 | 5061439 trader1
trader1's picture

if russia invests more into producing its own food, then this is a win for the environment :-)

grow and eat local

 

Thu, 08/07/2014 - 18:19 | 5061462 Slave
Slave's picture

Looks like they're really hurting.

/s

USA! USA! USA!

/s

Thu, 08/07/2014 - 18:30 | 5061503 Keyser
Keyser's picture

Good news is this should reflect in cheaper beef prices in the US!!!!

Thu, 08/07/2014 - 18:35 | 5061533 zerozulu
zerozulu's picture

We ( the Americans) will keep working hard to isolate the world until we turn this country into a dual national's sanctuary.

Thu, 08/07/2014 - 18:45 | 5061595 smlbizman
smlbizman's picture

your good news should be good news...but i bet these fuckers will destroy excess inventory...or buy them all up with tax money and throw the chicken and beef in the landfill....

Thu, 08/07/2014 - 19:12 | 5061744 TVP
TVP's picture

Or, use this opportunity to bring out the Yellenator and print trillions, Zimbabwe style.  

 

 

 

 

Thu, 08/07/2014 - 20:59 | 5062396 bonin006
bonin006's picture

Krugman told me that if the food price in the US starts to drop they will have to buy it up and destroy it to keep the price up, or no one would buy it and we would be plunged into a horrible depression with no possible escape.

Thu, 08/07/2014 - 18:51 | 5061634 Publicus
Publicus's picture

Checkmate.

Thu, 08/07/2014 - 22:03 | 5062785 Bingo Hammer
Bingo Hammer's picture

Checkmate?

No, sorry "Pub" we aren't anywhere near the "end game" this is still the early stage pawn exchanges. To be a chess player let alone a Grand Champion requires the mindset and the will to sacrifice anything and everything to ultimately vanquish your adversary.

I wonder sometimes if the real goal of all this is the sheer "sacrifice" of all us non essentials occupying and filling up the board space, to clear the "field" somewhat and then the "elite" peices will position things for themselves to a technical draw.

Ultimately and as usual, the real losers will only be the people......"same as it ever was, same as it ever was"

Thu, 08/07/2014 - 20:17 | 5062154 Bossman1967
Bossman1967's picture

Na we just keep the border open and let them work on the farm all be k. Not

Thu, 08/07/2014 - 18:37 | 5061546 ThisIsBob
ThisIsBob's picture

Going to be more Canadian bacon, thats for sure.

Thu, 08/07/2014 - 18:51 | 5061635 Slave
Slave's picture

And cheaper sawdust prices.

Thu, 08/07/2014 - 20:24 | 5062185 Savvy
Savvy's picture

Until US feedlots go b/k. But i'm sure next year you can buy from Brazil (the B in BRICs)

Fri, 08/08/2014 - 02:03 | 5063695 laomei
laomei's picture

Basically everyone bans US beef, mainly because it is absolute crap and full of drugs/hormones/other horrid shit.

Thu, 08/07/2014 - 18:29 | 5061501 Bananamerican
Bananamerican's picture

Autarchy bitches!
Putin's responses to western threats, blackmail, hypocrisy and bullying have reminded me of the way America used to seemingly act, once upon a time... with righteous resolution.
We've been the global bullies, the torturing, corrupt, bullshitting "bad guys", for so long I can't even remember what national pride feels like.

I really dislike bullies.

Thu, 08/07/2014 - 18:51 | 5061630 Kirk2NCC1701
Kirk2NCC1701's picture

All I'm seeing is:  No Monsanto, NO GMO.  No USD.

This "hurts" them HOW?  Can we please get the same ban in our State?

Thu, 08/07/2014 - 19:27 | 5061833 pFXTim
pFXTim's picture

BRICS food...I would think the logical followup would be a BRICS shithouse...

 

Thu, 08/07/2014 - 23:12 | 5063175 KnuckleDragger-X
KnuckleDragger-X's picture

BRiCS bricks???

Thu, 08/07/2014 - 19:31 | 5061864 stant
stant's picture

I guess for us it's beer for my men burbon for our tanks

Thu, 08/07/2014 - 20:05 | 5062063 ChiangMai
ChiangMai's picture

 

"if russia invests more into producing its own food, then this is a win for the environment :-)"

Fourth of nine excellent points from today's post at The Vineyard of the Saker:

You wanna be Uncle Sam's bitch? Pay the price!

Fourth, Russia used these sanctions to do something vital for the Russian economy…Russia is using this total embargo to provide a crucially needed time for the Russian agriculture to invest and take up a much bigger share on the Russian market.  Also, keep in mind that Russian products are GMO-free, and that they have much less preservatives, antibiotics, colors, taste enhancers, or pesticides.  And since they are local, they don't need to be brought in by using the kind of refrigeration/ preservation techniques which typically make products taste like cardboard.  In other words, Russian agricultural products taste much better, but that is not enough to compete.  This embargo now gives them a powerful boost to invest, develop and conquer market shares.

Related, regarding Monsanto / GMOs:

Ukraine - the Bee War

 

 

Thu, 08/07/2014 - 23:58 | 5063365 conscious being
conscious being's picture

Two great links. Kop Jai deurrrrrrrrr.

Thu, 08/07/2014 - 18:16 | 5061443 Omen IV
Omen IV's picture

and this will be permanent as the alternative channels of distribution get deeper

kill Poland....... dumb fucks

Thu, 08/07/2014 - 18:16 | 5061451 Not Too Important
Not Too Important's picture

It'll turn third world countries positive again, and Putin will kill GMO/Monsanto in the process.

Malaysia has chosen to go BRIC, with their blaming Ukraine for shooting down the plane. All of Asia is rethinking their alignment, and it isn't good for the US/London.

How many times do you have to be punched in the mouth before you choose a different banker?

Thu, 08/07/2014 - 18:39 | 5061552 PhilofOz
PhilofOz's picture

Malaysia accuses Ukraine? References please.

Thu, 08/07/2014 - 19:01 | 5061691 Not Too Important
Not Too Important's picture
"Malaysia has stated for the first time that it believes the Ukrainian government ought to bear responsibility for the crash of Malaysia Airlines flight MH17, according to a report from Singaporean newspaper Lianhe Zaobao.
Malaysian transport minister Liow Tiong Lai was quoted by the paper as saying that the Ukrainian government needs to take responsibility for the disaster because it was Ukrainian air traffic controllers who permitted MH17 to fly over the country's airspace when it was shot down on July 17 en route from Amsterdam to Kuala Lumpur, killing all 283 passengers and 15 crew on board.
Ukraine's air traffic controllers did not notify MH17 that it was not permitted to fly in the region, Liow said, adding that the Ukrainian government had a responsibility to tell the Boeing 777-200ER airliner if it was in any danger."
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140729000007&cid=1101&MainCatID=11 and this, from the Malaysian New Straights Times:
US analysts conclude MH17 downed by aircraft
Thu, 08/07/2014 - 19:53 | 5061999 PhilofOz
PhilofOz's picture

Thanks. Malaysia is being way too polite in just saying Ukraine "must bear responsibility". When they finally call a spade a spade and say that Ukraine shot down MH17 then I'll have a bit more respect for their statements.

Thu, 08/07/2014 - 21:19 | 5062506 Tabarnaque
Tabarnaque's picture

Thanks for placing these links here. Well worth reading and re-sending around.

Thu, 08/07/2014 - 19:07 | 5061703 Kirk2NCC1701
Kirk2NCC1701's picture

I LOL'd when I read that they will importing fruit from Israel. So... Jaffa Oranges after all, as I asked a couple of days ago.

Anyone else see the irony, at how foolish Obama makes the US and the EU look, if they still trade with Israel?

Merkel must be thinking: "Welches Affentheater!" (What a monkey circus!), a German expression

Thu, 08/07/2014 - 20:30 | 5062223 Savvy
Savvy's picture

Sorry no link, but I read Malaysia was the only country to actually try and convict Bush and Cheney for war crimes.

Fri, 08/08/2014 - 00:01 | 5063387 conscious being
conscious being's picture

That and Israelis for Cast Lead. Only days later, their planes started disappearing.

Thu, 08/07/2014 - 18:17 | 5061456 666
666's picture

But how will the USSA keep the Russians population ill with all the antibiotics, pesticides, and GMOs that  are added to food if they stop buying it? How will the Russians get heart disease if McDonald's is closed down? Inquiring minds and the NSA want to know!

Fri, 08/08/2014 - 00:09 | 5063411 conscious being
conscious being's picture

Funny you should ask. Turns out, they're working on it.

Monday, June 9, 2014 Ukraine - the Bee War

http://rocksolidpolitics.blogspot.com/2014/06/ukraine-bee-war.html

 

From Chiang Mai upthread

Thu, 08/07/2014 - 18:18 | 5061459 no more banksters
no more banksters's picture

"What we see now, is a cruel battle with time. On the one hand, Russia and China, together with the rest of the BRICS, are trying to get rid of the dollar and form their own currency system to gain complete independence, on the other, the neocon banking-corporate puppets in the US are in panic and seek desperately a pretext to come to war with Russia and put an end to this threat for their plans. This explains their agony to drag Russia into a warm conflict."

http://failedevolution.blogspot.gr/2014/08/the-dominant-elite-ready-to-b...

Thu, 08/07/2014 - 18:40 | 5061562 Bastiat
Bastiat's picture

I'm afraid so.

Thu, 08/07/2014 - 18:20 | 5061465 Bloppy
Bloppy's picture

This seems risky for Putin if supplies from the replacement countries are slow to reach Russia

Thu, 08/07/2014 - 18:30 | 5061498 813kml
813kml's picture

One would assume that Russian gov already had plans and contingencies before announcing sanctions.  This type of thinking can be confusing to Americans because it runs opposite of US gov.

Thu, 08/07/2014 - 19:08 | 5061721 Kirk2NCC1701
Kirk2NCC1701's picture

You bet!  Probably inked while he was in Brasil for the World Cup.

Thu, 08/07/2014 - 19:41 | 5061935 lotsoffun
lotsoffun's picture

'US gov.' doesn't exist currently.  the FED exists, the 'gov' exists to try to snatch and grab at some of the printed beauties before jamie and lloyd pocket them all.  just that simple.  in between, the MIC tells the 'gov' what to do, and again the 'gov' hopes some of it trickles down.

 

Thu, 08/07/2014 - 20:18 | 5062153 ChiangMai
ChiangMai's picture

Also note Medvedev made this statement more than four months ago:

Prime Minister Dmitry Medvedev recently announced that Russia will no longer import GMO products, stating that the nation has enough space, and enough resources to produce organic food.

 "If the Americans like to eat GMO products, let them eat it then. We don’t need to do that; we have enough space and opportunities to produce organic food.”

 

Thu, 08/07/2014 - 21:14 | 5062460 ptolemy_newit
ptolemy_newit's picture

President Vladimir V. Putin said "A modern transport infrastructure is the real road to Russia's future”.  By 2016 the plan is to construct 63,000 km of new roads and 8,600 km of railway route through Siberia to facilitate economic ties to China. 

 Also the current traffic intensity and capacity utilisation levels will require more than a third of the roads in Russia to reconstruction and modernize; and we are talking about a network of 1,145,000 km in total!

 We are looking at $25-35bn of Government spending annually on road infrastructure alone for the next 3-5 years.  All told, Russia is hoping to raise $1 trillion for infrastructure investment over the next 10 years, with as much as 80% of the financing coming from private sources, (private toll roads).

 

 

Fri, 08/08/2014 - 10:33 | 5065045 FrustratedLogician
FrustratedLogician's picture

My father should be going to work to Russia lol. He is civil engineer and roads engineer working for some fucked up EU funded company. I will mention that to him lol.

Thu, 08/07/2014 - 18:30 | 5061500 Keyser
Keyser's picture

Russians are much harder than their western counterparts... Plus, if they complain, they know the gulag is not far away... 

Thu, 08/07/2014 - 18:37 | 5061550 NOTaREALmerican
NOTaREALmerican's picture

So, they've already got FEMA camps.   Good news on that front.   Wait a sec,   FEMA camps are good or bad?  This is getting confusing.

Thu, 08/07/2014 - 23:26 | 5063231 KnuckleDragger-X
KnuckleDragger-X's picture

Read the "Gulag Archepeligo".

Fri, 08/08/2014 - 00:17 | 5063435 conscious being
conscious being's picture

Yes, read the "Gulag Archepeligo", but don't confuse the now departed Soviet Union w/ the present Russia like the Zino cheering squad stationed here on ZH want you to.

Thu, 08/07/2014 - 18:45 | 5061597 esum
esum's picture

russians much harder..... they are fucking DRUNKS..... DURING PERESTROIKA BROUGHT IN TURKS to do a job and gave the "hard ruskies" a bottle of vodka and told them to go fuck themselves....but come back tomorrow for a refill... 

their army has low morale and isnt being paid on time... half their shit doesn't work and they would cross thier fingers we haven't re-programmed their missles to boomerang.... 

after the 70+ years under communism THEIR SPIRIT IS CRUSHED and the only thing they learned under communism was how to lie cheat and steal.....  The only think dropping communism did was fuck the pensioneers, proudly weraing thier base-medal medals... proudly earned by sacrifice for mutha russia... they got sodomized....... 

Unles Obola finishes his objective to reduce the military, we can take out China and Russia simultaneously.... maybe not if another like Obola gets in .... 

 

 

Thu, 08/07/2014 - 19:00 | 5061683 Slave
Slave's picture

Please tell me why you want us to "take out" Russia and China.

Thu, 08/07/2014 - 19:21 | 5061797 TungstenBars
TungstenBars's picture

WTF are you talking about. i know Russian soldiers and they certainly get paid on time, and their morale is at 110%

 

Who wouldn't want to kick some amerinazi ass after what has happened? 

 

Where do you get your info from

Thu, 08/07/2014 - 19:46 | 5061959 Anusocracy
Anusocracy's picture

Apparently neocon comic books.

Thu, 08/07/2014 - 19:49 | 5061980 underbussen
underbussen's picture

You're twenty years out of touch. PAK FA T-50 anyone? Go back to your video games, reality does not suit you.

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