• Denmark's news in English
 
app_header_v3

Russia import ban could cost Denmark billions

The Local · 7 Aug 2014, 10:47

Published: 07 Aug 2014 10:47 GMT+02:00

Vladimir Putin’s announced one-year ban on food and agricultural imports from countries that imposed sanctions on Russia has the potential to cost Denmark billions of kroner. 
 
Putin on Wednesday imposed one-year bans and limits on food and agricultural imports from nations that have imposed sanctions on Russia over its aggression toward Ukraine.
 
The impact on Denmark could be significant. In 2013, Denmark’s total exports to Russia accounted for 12 billion kroner ($2.2 billion). That corresponds to two percent of Denmark’s total exports and makes Russia Denmark’s 13th largest market. 
 
Among Denmark’s most important export areas to Russia is the food sector, which accounted for 5.76 billion kroner in 2013, counting agricultural technology. 
 
According to the Kremlin, food products will be directly targeted by the ban. The Kremlin’s statement said that Putin's executive decree "either bans or limits... the import into the Russian Federation of certain kinds of agricultural products, raw materials and food originating from countries that have decided to adopt economic sanctions against Russian entities and (or) individuals."
 
Russia will reportedly publish a full list of banned products by Thursday evening but sources have reported that the list will include all fruits and vegetables produced in the 28 EU nations. According to Reuters, Russian PM Dmitry Medvedev said meat, fish and dairy would also be banned. If that is the case, the impact on Denmark could be much more severe. 
 
According to figures from the Danish Agriculture and Food Council (Landbrug & Fødevarer), fruits and vegetables only account for a small percentage of Denmark’s agricultural exports to Russia. The biggest export by far is pork, which accounted for half of the total 4.3 billion kroner food export total to Russia in 2013. Fruits, nuts and vegetables only accounted for a combined seven million kroner. Dairy products however accounted for 686 million kroner, while Denmark exported 284 million kroner worth of fish to Russia and beef products totaled 178 million. 
 
Landbrug & Fødevarer said that it was worried about “the potentially serious situation” created by Russia’s announced ban and is eagerly awaiting the final list of banned products.
 
Story continues below…
“It will be very serious, also for the Danish food sector, if Russia forbids or limits the import of agricultural products. For now, we are awaiting a concrete list showing which nations and which products will be covered by the ban,” Landbrug & Fødevarer’s administrative director, Søren Gade, said in a statement. 
 
Danske Bank analyst Steen Bocian agreed that it was hard to predict the impact on Denmark until the final list is produced but said that it might not be as bad for Denmark as it looks.
 
“Many of the items that can’t be sold on the Russian market will be sold in other markets,” he told Ritzau.

For more news from Denmark, join us on Facebook and Twitter.

Your comments about this article

Today's headlines
Border checks
First migrants make it from Denmark to Sweden on foot
The Øresund Bridge connects Copenhagen to Malmö. Photo: Colourbox

Dozens of attempts to cross the Øresund Bridge have been made, but this is the first successful crossing.

Seagulls 1, Aarhus 0
Aarhus's Hitchcockian nightmare will continue. Photo: Stefan W/Flickr

Seagulls 1, Aarhus 0

27 minutes ago

Officials in Denmark’s second city declared an all-out war on seagulls earlier this year. They lost.

Russia lashes out at ‘hostile’ Denmark
Russia's ambassador to Denmark, Mikhail Vanin. Photo: Embassy of the Russian Federation in the Kingdom of Denmark

Russia’s ambassador to Denmark accused the Danes of being “hostile” and “anti-Russian” in an interview published on Friday.

Danish MP cleared for 'bomb civilians' remark
Søren Espersen of the Danish People's Party. File photo: Keld Navntoft/Scanpix

Copenhagen Police have dropped proceedings against Danish People’s Party (DF) spokesperson Søren Espersen after he said that Denmark “should start” bombing civilians in Syria.

Denmark's biggest IPO to be windfall for Goldman Sachs
Dong's expected market value is up to 106.5 billion kroner. Photo: Claus Fisker/Scanpix

The Danish wind farm group Dong Energy is valued at up to $16 billion, leading to renewed debate about its partial sale to the US investment bank.

Aarhus blocks plans for grand mosque
Aarhus will not get a new mosque after all. Photo: Guillaume Baviere/Flickr

The sale of a plot of land for the construction of a grand mosque has been cancelled by Aarhus Municipality.

Denmark's waters are cleaner than ever
Danish beaches are cleaner than ever. Photo: Old Dane/ Wikipedia

Jump on in, the water's fine! In fact, it's cleaner than it's ever been.

Syrian refugees sue Denmark over long family wait time
File photo of the refugee tent camp in Thisted. Photo: Sara Gangsted/Scanpix

A group of five Syrians are suing Denmark and Immigration Minister Inger Støjberg over the three-year waiting period for family reunification imposed on refugees.

Green card holders in Denmark in race against time
Green card holder Mehvish Kiran said that her four children would not be able to adjust to life in Pakistan. Photo: Submitted

Thousands of green card holders are desperately trying convince politicians not to force them out of Denmark and say that a recently-granted extension to the scheme is a hollow victory.

Danish economy set for ‘historically’ low growth
File photo: Scanpix DK

Reports from the Ministry of Finance and independent experts suggest that the Danish economy is likely to be one of Europe’s slowest growers over the coming years.

Green card holders in Denmark in race against time
National
Green card holders in Denmark in race against time
Sponsored Article
Eat, learn, live: unforgettable holidays in France
How Copenhagen achieved an ‘organic food revolution’
National
How Copenhagen achieved an ‘organic food revolution’
Travel
The second best destination in all of Europe is...
Sport
We are the champions! Denmark wins world badminton team title
After 100 years, British WW1 sailor identified in Denmark
National
After 100 years, British WW1 sailor identified in Denmark
Society
Strangest political story in Denmark just got stranger
International
Keeping Denmark in Europol 'maybe impossible'
Analysis & Opinion
Green card holders tell Denmark to keep its promise
National
Denmark picks F-35 in historic jet purchase
Society
Denmark to no longer define transgender as mental illness
National
Danish minister tells 'Sharia' troublemakers to 'get a job'
Culture
Danish 'martyr' exhibit reported to police
National
Denmark extends 'temporary' border measures for sixth time
National
Denmark nears final decision on controversial fighter jets
Society
Muslim ‘girls only’ swimming sessions ripple Danish waters
National
Could Danes face a 'red meat tax' to help climate?
National
Denmark unable to process or issue visas
Denmark to go to war against Isis in Syria
International
Denmark to go to war against Isis in Syria
Business & Money
How Denmark’s national bank card is about to change
Culture
The best Danish bands you've (maybe) never heard of
Danes leaving the church in droves
Society
Atheist campaign gets Danes to leave the church in droves
Four Isis ‘recruits’ arrested in Copenhagen
National
Four Isis ‘recruits’ arrested in Copenhagen
Business & Money
Unwrapping Denmark's first zero-packaging food store
2,287
jobs available