August 6: Putin signed a decree on counter-sanctions against the West.
On August 6, 2014, Vladimir Putin signed a decree on counter-sanctions in response to Western sanctions. Import substitution came to Russia, and local customs officials began destroying European delicacies.
"In order to protect national interests"
The decree was adopted "in order to protect national interests." It affected countries that imposed sanctions against Russia in March 2014, following the annexation of Crimea—the EU, the US, Canada, Australia, and Norway.
In late July 2014, following the downing of Malaysia Airlines Flight MH17, these countries imposed sectoral restrictions on Russia in defense, finance, and energy. A few days later, Putin signed a decree imposing counter-sanctions.
It's such an asymmetrical response—we did it where it was advantageous for us. And we won't do anything just to punish someone or punish ourselves. Buy a ticket and not go.
(Vladimir Putin, 2016)
What was banned?
The ban applies to food products and agricultural raw materials: meat, sausage, fish, poultry, milk, cheese, vegetables, nuts and fruits.
In 2015, Russian authorities expanded the list of sanctioned countries. It included Albania, Montenegro, Iceland, Liechtenstein, and, since 2016, Ukraine. The total value of goods subject to the embargo amounted to approximately $9 billion.
The share of Western products in the total volume of food imported into Russia has decreased from 44% to 25%, including the European Union – from 33% to 20%.
Later, Russian authorities either removed or added various items to the blacklist.
For example, the import of sports products and lactose-free milk, juvenile fish of certain species, shrimp, and mussels, as well as baby food and ingredients for its production, was permitted. Salt was banned—except for that used in dietary supplements and medical devices.
European cheese producers attempted to circumvent the ban by importing their products as lactose-free, but Russian authorities soon "took action," and this loophole disappeared.
Destruction of prohibited goods
A year after the imposition of counter-sanctions, Putin ordered the destruction of banned products at the border. The head of the Ministry of Agriculture, Alexander Tkachev, "prompted" the president to take this measure—to avoid sending them back:
I would like to ask you and the Russian government to do everything possible to ensure that we can destroy all shipments of food products that are illegally transported across the Russian border on the spot.
Over the next three years, Rosselkhoznadzor destroyed approximately 25 tons of sanctioned products.
Prices, surrogates and import substitution
Meanwhile, Russians faced rising food prices and substitutes (whole milk was replaced with powdered milk, and milk fat with vegetable fats and palm oil).
At the same time, it was necessary to establish re-export of prohibited goods from third countries—for example, apples from Belarus and dairy products from Serbia.
At the same time, import substitution became fashionable in Russia: officials reported on it, and agricultural producers boasted about it.
The introduction of counter-sanctions has proven beneficial to our farmers. This must be acknowledged with absolute certainty.
(Prime Minister Dmitry Medvedev, 2016)
According to Forbes, "state support, counter-sanctions, and the ruble devaluation have turned agriculture into one of the most profitable businesses in Russia." While in 2013, according to the Financial Times, Russia imported 35% of its food consumption, in 2018, the figure was no more than 20%.
What's wrong with Europe and what's going on now?
For the EU, the damage from the Russian embargo was not so significant: farmers received subsidies, and they found new markets. A French research center estimated annual export losses for sanctioned countries at $60 billion, with approximately 80% of the lost profits coming from non-sanctioned goods.
Putin's counter-sanctions are still in effect—in September 2024, the Russian president extended them until December 31, 2026.
"Screw them!"
(Putin in response to a journalist's question about easing counter-sanctions, 2016)
