NEWSWATCH AP: American farmer among the winners in sanctions-hit Russia

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[“American farmer among the winners in sanctions-hit Russia” – AP – James Ellingsworth –
Apr. 1, 2015]

AP examines the impact of Ukraine-related Western sanctions on Russia, such as increased prices for some farmers, instability in international projects, and evolving energy relations between Russia and China.

The impact of sanctions, and a Russian embargo, on agriculture is apparently mixed.

Russia’s ‘counter-sanctions’ ban on food imports has forced up prices within Russia — meaning [cheese producing dairy farmer] Walker earns more for his product. But he warns that it has also made the market unstable.

 

Some international projects are in disarray.

Sanctions have also thrown international projects into turmoil.
One of the main state-owned companies to be targeted by punitive measures is oil producer Rosneft. It had to postpone plans to drill in the Arctic with U.S. firm ExxonMobil. At the same time, sanctions have largely cut off state firms from international lending, making refinancing difficult, costly and a burden on the government.

While the sanctions arguably have not produced a change in Putin policies targeted by the sanctions, they apparently have impacted other responsive measures, such as a pivot east.

While the Ukraine crisis has taken the U.S. government’s attention away from its “pivot to Asia” strategy, it has had the opposite effect in Russia, forcing the government to seek new partnerships.
The centerpiece is a 30-year, $400 billion gas deal with China signed in May, accompanied by various other deals with Asian and Middle Eastern nations.

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