Russia is not afraid of sanctions

Deliveries from South Caucasus and Iran will prevent deficit

Russia is not afraid of the European sanctions, Russia's Deputy Minister of Foreign Affairs Grigory Karasin told the EU Envoy to Russia yesterday. However, the Russian authorities believe that the sanctions will aggravate the situation surrounding the ongoing Ukrainian crisis. "The measures introduced by the Russian government in response to the European sanctions were caused by the EU's policies. We did not want to introduce these measures, it was not our choice, but we cannot leave the European sanctions without a response," the Foreign Ministry said in a statement. The measures introduced by the cabinet were ordered by President Vladimir Putin in response to the recent sanctions imposed by the US and the EU on Russia's financial and oil sector.

"The president's order and the document issued by the cabinet call for some kind of balance. We should estimate the amount of food we are able to produce, the amount imported from countries who are not affected by the sanctions and the market demand," the deputy president of the Russian Trade and Industry Chamber, Georgy Petrov, told Vestnik Kavkaza.

According to the expert, the products banned so far can easily be substituted. "The products banned by the government are not crucial. The market can easily overcome these measures. Moreover, many products can be replaced by substitutes produced in Russia," he said.

The expert also noted that the restrictions imposed on western food-producing enterprises may be favourable for Russia's closest neighbours, including Caucasian countries. "The example of Georgian wine is very eloquent. The Russian market was closed to Georgian producers for a long time. When it was reopened, the Georgians believed that they could sell 5 million bottles, while in fact the figure was 10 million. Can you imagine the positive effect on the Georgian economy?" the expert said. According to him, Iran also has a good chance of increasing food supplies to Russia. "Iran produces very good vegetables and chopped tomatoes. Chopped tomatoes produced in Iran are indeed natural and high-quality. I believe there will be no deficit in Russia. In fact, the Russians will be able to consume better products," he says.

A member of Russia's Public Chamber, the Public Council at the Russian Ministry of Economy and National Strategy Council, Professor Iosif Diskin, talked to Vestnik Kavkaza about the new opportunities for the republics of North Caucasus. "The investment in the agricultural industry in the region is great. In Karachay-Cherkessia mass production of vegetables has been launched. The climate is indeed favourable, a lot of sunshine, good water, modern technologies and labour resources. All these resources are very promising. In fact, we have already launched the process of replacing imports. We have a great chance of relaunching production of lamb in North Ossetia and Stavropol Territory. We should support this business," the expert said.

According to Diskin, the opportunities for the countries of the South Caucasus are also great. "Production of fruit and vegetables is traditional for Armenia. We should support this production, provide investment in order to rebuild the agricultural sector of Armenia. There will be no problems concerning transportation. The same is true for Azerbaijan. There are enterprises in the Lenkoransky District of the country. The natural resources in Azerbaijan is indeed great. I believe we should establish joint companies, which would secure food deliveries so that products are cheap and high-quality," the expert said.