Russia Sanctions Blowback: Finland's Largest Dairy Lays Off 800, Spain Seeks EU Aid, Poland Complains To WTO

Tyler Durden's picture

Well that didn't take long. Mere day after Russia announced its ban on Western nation food imports, European countries are scrambling (as we explained why here). Greece has already expressed dismay, but now Spanish officials will meet with EU leaders to discuss offsetting the country’s estimated up to $800 million in food and agriculture losses due to sanctions. Poland is pissed and has complained to the WTO claiming "Russia has broken international law in both its embargo;" and Finland's largest dairy producer has announced 800 layoffs due to the sanctions. When does Europe tell Washington - enough!

 

Spain demands aid... (despite Rajoy's support for anti-Russia sanctions)

Spanish Agriculture Minister Isabel Garcia Tejerina said the restrictions have prompted her ministry to convene a meeting with the European Commission in Brussels on Thursday.

 

...

 

The Spanish government has estimated that agricultural losses will amount to €337 million, or about 1.8 percent of Spanish exports. Other groups, like Spain’s opposition Socialist Party, have estimated the losses to be higher- €581 million.

 

Last year, 37,000 tons of tomatoes, 35,000 tons of peaches, and 33,000 tons of mandarin oranges were exported from Spain to Russia, according to Spain’s Small Farmer’s Association (UPA).

 

“The decision that was adopted involves many political issues that exist between Russia and the European Union, and not just the EU. As a result, it may be necessary to compensate us for these political decisions - the producers who work all year and want to at least be paid enough at least to cover production costs,” Lorenzo Ramos, Secretary General of UPA, told RT.

Finland suffers...

The largest Finnish dairy producer Valio send a forced leave of the staff with factories working for export to Russia. This is stated in the message of concern.

 

Restructuring will affect Finnish enterprises' Valio: Plant in Haapavesi ( cheese Oltermanni), Seinäjoki ( oil Valio), Vantaa ( cream cheese Viola) and warehouse in Lappeenranta. Concern revise employment contracts of all the employees of these companies. " Some of the staff ( according to preliminary estimates, 800 people) can go on forced leave to fully clarify the situation, with a portion of employees will not be renewed temporary employment contracts, "- said in a statement.

Poland complains...

Poland's agriculture minister went on television to announce the country was taking action against Russia's new import ban. "We believe Russia has broken international law in both its embargo against Poland and its embargo against the EU," Marek Sawicki said.

 

Russia banned the import of Polish fruit and vegetables in early August - a move Sawicki said would cost Poland 0.6 percent of GDP.

 

...

 

"If a WTO member state believes another WTO member state has taken a measure that is not in conformity with WTO rules, the affected WTO member state may request mediation," attorney and WTO expert Eric Pickett said.

And the Czechs are in for some EU assistance...

  • *ZEMAN BACKS EU AID TO CZECH AGRICULTURAL COS. AFTER SANCTIONS

*  *  *

S&P 500 nears all-time highs as US companies do not seem to suffer at all... We are sure Merkel is watching carefully.

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Deathrips's picture

Its not an accident.

 

Russia is the scapegoat.

 

RIPS

S.M.T.U.Q.I.'s picture

How much longer can we stand Obozoma making wars?  These bleeding hart dems are going to ruin this amazing land.

bobnoxy's picture

Was your hearing aid broken when the usual troupe of Republicans were calling for arming the Kurds, not to mention the Syrian opposition, and renewing bombing, helped by right wing media douchebags like Krauthammer? Did you forget who started the Iraq war in the first place?

S.M.T.U.Q.I.'s picture

They won't take my guns away from me.  If they do take them I will shoot them before they can.

Publicus's picture

We are seeing the dissolution of the WTO right before our eyes. This is beautiful.

Things that go bump's picture

What did they expect? That Russia would just lie down and take being squeezed? This was not thought through. If they were cut off from something they would make other arrangements also, if they could. 

BlindMonkey's picture

The US and EU sure didn't.

Russia was all over China and S. Am. Lining up alternates and had deals ready to go immediately. That is how the lessons of chess apply at scale.

Anarchy 99's picture

I wish you were right but......no, they will just drone your ass, and evryone living with and near you.

S.M.T.U.Q.I.'s picture

I don't know what a kurd is but it sounds alot like turd.

bobnoxy's picture

You're drunk, aren't you?

S.M.T.U.Q.I.'s picture

Tony Stewart will run over u and Obozoma.

bobnoxy's picture

Still haven't found that ideal combination of Bud Lite, crystal meth and muscle relaxers, have you? Here's a hint that should save you some money, and friends. There isn't one.

SWRichmond's picture

Maybe the laid off dairy workers can get extended unemployment benefits from the US?

BlindMonkey's picture

They have to walk to Phoenix first.

RafterManFMJ's picture

Poland is pissed and has complained to the WTO claiming "Russia has broken international law in both its embargo;"

Fuck you Poland you fucking cunts - not happy with fucking with Germany's reasonable request for her city and people back - because you had a war guarantee from England?

How'd that work out for ya?

Such a bitch country wanting to play in the big leagues yet hiding behind England and now NATO, tweaking the nose of their betters while cravenly relying on alliances to prevent repercussions ... and now whining because the Rooskies won't just roll over and take it?

This boggles the mind.

I guess 50 million dead wasn't enough - let's go for 5 billion this time.

TL/DR Fuck you Poland.

I am more equal than others's picture

 

 

 

WW III coming soon too a theater near you. 

Groundhog Day's picture

Russia is also playing with fire.. trusting the chinese to supply them with the food they are not ordering from the west.

WHO knows how its made (pun intended)

Global Hunter's picture

sure but they are also actively trying to deal with Brazil, Argentina, Paraguay, Uruguay and Chile for food products.  Turkey too I believe even though they are NATO.

Jack Burton's picture

Indeed! Brazil has started construction of 8 new meat packing plants to service the Russia market. Many thousands of new jobs will go to Brazilian workers and families will earn a living. Brazil would be insane to throw that away because Obama is a cunt!

gallistic's picture

Greetings Jack,

Last month, I posted on some some things that were flying under the radar, and many people did not really grasp the implications. Well, here is one specific and tangible example of the BRICS/UNASUR summit and some of the things I discussed. 

As crazy as it sounds, I believe you are actually understating the numbers by quite a bit, If the numbers from Brazil’s Association of Meat Exporters are accurate, it is a hell of a lot more than just "8 new meat packing plants".

Consider this:

"Brazilian meat exports to Russia are soaring. Brazil’s Association of Meat Exporters said on Tuesday that beef exports rose 19 per cent in July to $692 million over the same period last year. Exports to Russia rose 113 per cent to $181 million last month, compared to July 2013. The volume of meat exports to Russia surged, rising 78.9 per cent during July, to 41,000 tonnes. Recently, 90 new meat plants in Brazil were approved to send beef, chicken and pork to Russia."

Even the propagandistic MSM cannot ignore it and find themselves forced to report on this.

Wait for the numbers from Argentina, which is another big food producer with a huge excess capacity for production. They will certainly have similar, (and I personally believe even greater) and absolutely eye-popping numbers coming out.

As a slight digression, I will point out to any active ZH investor that they might consider getting ahead of the curve and invest in those enterprises which will benefit from this explosive growth in trade. These numbers will continue to soar until the supply/demand reaches some semblance of equilibrium, and we are very far from that right now...

In any case, Latin American countries such as Ecuador, Chile, Argentina, Bolivia, Uruguay, Brazil, and even subjugated Mexico (WTF!) are racing to fill the EU void. The EU is vociferously protesting, but the Latin American countries will promptly tell the spineless Euro lackeys to go cry to their Uncle Sam about it and blow it out their collective asses.

This is no joke; tectonic plates are moving fast and the ground is shifting. It kinda reminds me of the old Russian proverb-

Russians take their time to saddle the horses, but they ride awfully fast!

gallistic's picture

It just occurred to me that I should have mentioned another proverb-

"Don't bring a knife to a gunfight".

Well, Vladimir Vladimirovich just put one in the EU's kneecap, a full 20 feet away from the knife.

Poland, the Netherlands, Lithuania, Estonia, and Latvia are already dead. It falls to the EU to deal with the corpses now.

Several other countries are in cardiac arrest right now. Italy, Spain, Greece, Finland, Bulgaria, Sweden, Hungary, Slovakia, and Belgium, and yes, even though they will keep a stiff upper lip, the "United Kingdom" (who is about to lose more than 1/3 of it's national territory).

It falls upon the EU to provide first aid and keep them alive. Unfortunately, the EMTs that are tasked with providing CPR and mortuary services (Germany, France) are experiencing tachycardia and hyperventilating.

Putin is very clearly demonstrating to the EU what a "boomerang" is, and what it does.

fel.temp.reparatio's picture

Yep, there's obviously the BRICS nations (where Brazil is also part of USAN), not to mention the EEU which when ratified will kick off January 1st, 2015. Turkey has long established relations with Russia and recently entered into a gas deal and are looking into collaborating with Russia in the Russian-led Customs Union... 

ChiangMai's picture

 

Last I checked, total countries less the 28 EU, US, and Australia comes to 166, not 1.

And there's a lot more (good) going on than rearranging some food exports:

The birth of a new financial-economic system: the example of Russia and Argentina

The Vineyard of the Saker

12 August

Excerpt:

The bottom line is this: very few nations are still attracted to the AngloZionist imperial model, and very few are still frightened by it.  The result is the kind of collaboration (never shown on the MSM, of course) which you can see in this report [VIDEO at link above - 07:47 with English captioning, courtesy of the Russian team of The Vineyard of the Saker] .  Enjoy!

 

Anarchy 99's picture

Russia has enough land to feed the whole planet, and now thy have their "excuse" to gear up food production. they only have around 140 million people (I think)

o2sd's picture

Land, yes. However they also have a very short growing season on most of that land. Kind of like Saskatchewan. Grow a lot in the summer, import food in the winter.

 

drendebe10's picture

Putin allegedly said: Negotiating w obama is like playing chess with a pigeon.  It knocks all the pieces over, craps all over the board and then struts around like it won.

ForWhomTheTollBuilds's picture

Is that really true?  If he really said that its just about the funniest thing Ive seen in years

max2205's picture

I banned Whole Foods....whatever

JuliaS's picture

Popular quote originating from Americans disillusioned in Obama rather than Putin.

CPAHb GOSPODNYA's picture

I believe the origins of this quote came from atheists who use it against young earth creationists (YECs) who debate the age of the earth on YouTube and site the Bible as definitive proof and then claim themselves victors of the debate. Don't quote me on that.

S.M.T.U.Q.I.'s picture

This is so true.  Obozoma makes huge mess as he tries to win.  But he probably may not.

FrustratedLogician's picture

I read somewhere that this quote is false. Everybody throws it around but apparently Putin never said that. However, I agree that The Chimp is something like that.

JohninMK's picture

Obama's problem is that it is totally believable.

Let them eat iPads's picture

Everyone did just fine not trading with the Soviets during the cold war.

Stop whining and learn to adjust. Find other buyers, they're out there.

Winston Churchill's picture

There was a whole bunch of trade during the soviet era.With the exception of

what was directly of military use.

You had to be creative over how you got paid though, I got paid into containers of

vodka on more than one occaison.

Global Hunter's picture

there's buyers out there...take a basket of goods and services that EU nations may or may not have sold to Russia and can't now, put a theoretical value on it, collatoralize the basket of goods and services with Polish apples and Finnish milk and sell it to Norwegian pension funds as a bond.  Create a derivative and ETF on the these baskets, rehypothecate the Polish apples, blow up bubble enticing new buyers.

cro_maat's picture

Winston - You are so right on that. The fishermen on Cape Cod during the 70's and 80's would sell their entire catch to Soviet trawlers while out on the Grand Banks for Russion goods such as barrels, vodka, gear, etc. I think that most of the plastic food grade barrels that were in use at the Chatham fish pier and on the boats of the Chatham fleet were all Soviet made.

Jack Burton's picture

Ronald Reagan signed a huge wheat export deal to the Soviet Union. No republican complained then, in fact republican farmers were delighted with Reagan for being pragmatic and a booster of farm exports. If RR could see the light, then any real Ameircan should accept trade as above petty political war mongering.

BlindMonkey's picture

The biggest difference now is Russia doesn't want that GMO shit.

FeralSerf's picture

Or sell it to your friendly "buy when the blood runs in the streets" Israeli (for much less) who will then find someone that wants it.

When times get really tough, the pawn brokers get richer.

debtor of last resort's picture

Yes. Use a intermediar. Turkish apples are very tasteful.

Bioscale's picture

You should know that former Soviet Russia had supplied the former western Europe with gas/oil....but you are right, Germany and Austria is not everyone.

In the early 1980s there were American efforts, led by the Reagan administration, to convince European countries through which a proposed Soviet gas pipeline was to be built to deny firms responsible for construction the ability to purchase supplies and parts for the pipeline and associated facilities. The pipeline was built despite these protests and the rise of large Russian gas firms such as Gazprom as well as increased Russian fossil fuel production has facilitated a large expansion in the quantity of gas supplied to the European market since the 1990s.

https://en.wikipedia.org/wiki/Russia_in_the_European_energy_sector

rwe2late's picture

Let them eat iPads

incredible,

nostalgic for the "good old days" of the Cold War.

Your understanding has similarity to Marie Antoinette's.