The price of the Crimea: experts estimate losses of every Russian sanctions

Photo: AGN MOSCOW

Last weekend, our country celebrated the third anniversary of the reunification of the black sea Peninsula and Sevastopol with Russia. Tried to disturb the nationwide euphoria of the experts of the Gaidar Institute. According to them, every year since the reunification of the Peninsula with Russia, the citizens lose 4.4 thousand rubles. The cause is a food embargo in response to Western sanctions.

Experts of the Gaidar Institute, the Academy and the Etta provided the public with the monitoring of the economic situation in Russia. According to the study, “the vast majority of the Russian regions” the population’s real incomes continue to fall, which negatively affects consumption. This point needs no challenge is more of a harsh reality.

Further, the experts have drawn a parallel between Russia imposed in 2014 the food embargo and monetary losses of the population and come to the following conclusion: the reunification of the Peninsula with our country annually takes every citizen by 4.4 thousand rubles. On average this amount, according to the report, increased costs of Russian consumers starting in 2014. “The evaluations were based on comparison of actual and predicted (in the absence of the embargo) prices,” from monitoring. The cost of the sanctions products of countries that do not fall under the Russian ban, increased on average by 3%, while the price tag on nesanktsionnymi goods jumped overall by 2.9%.

“About 300 rubles per month per person. Not to say that it is very unexpected, — the chief researcher of the Center for agrofood policy, Ranepa Vasily Uzun. — We changed the import of cheap goods, or on goods from countries that sold a little bit more, or to domestic products, which, of course, was more expensive. Yes, all swear that American legs are bad, but they cost much cheaper than domestic.”

At the same time the employee of the Russian Academy believes that positive sanctions affect farmers. They increased their production, but it rested in the purchasing power of the population. “Over the 2-3 years since the introduction of the embargo, poultry, pork has risen in price. The purchasing power of the population fell, to acquire stopped, the prices have gone down, says Uzun. — The producers of new problems arose. What to do with what made. The domestic market is satisfied and even saturated, so to continue to grow at a pace impossible. It is necessary to develop other markets, and not care only about import substitution”.

According to the monitoring, the peak of rising prices and falling consumption volumes fell in the first six months to a year after the introduction of food restrictions. Following this logic, in 2015 the situation on the mend. But the creators of the report, and this positive aspect has tried to downplay: “This fact is significant from the point of view of import substitution policy implementation: the embargo benefits the producers only in the short term, in the long-term effect of the embargo on the performance of the market is reduced”, — experts underline.

After reviewing the results of economic monitoring, the Deputy Chairman of the Federation Council Committee for food policy and nature management Sergey Lisovsky called the authors of the monitoring of “hidden enemies” of our country. He noted the positive side of the counter, which they kept. “Russia has imposed a food embargo when they realized just how cynical our Western friends and how dangerous it is to trust them and to give control of your food market, — said the expert, “MK”. We realized that completely failed in their own production of fruits and vegetables and milk. Over the years, these sanctions we have managed to create a tendency to increase its own production. In the last two years in Russia there has been a rapid increase in the number of greenhouses. If everything will be the way to go next year, we are fully in winter will provide himself with a cucumber that never was”.

Conclusion Senator unambiguous — counter-sanctions has helped Russian agricultural production, as well as producers of pork and poultry meat. As for rising prices, they went up in the first place is not because of the food embargo, but because of the dollar, what the authors are silent.

Sanctions . Chronicle of events