Russian Food Ban: Who Feels the Pain Worst?

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Aug. 11 (Bloomberg) -- Anastasia Amoroso, global market strategist at JPMorgan Funds, discusses how a food ban will impact Russian citizens and food producers in the European Union and United States. She speaks on “Bloomberg Surveillance.”

Sanctions work?

That is highly unlikely.

I was looking at a financial times on friday that showed the huge surge in russia's food imports.

Pretty much when president clinton took office in 2000. -- president putin took office in 2000. if you look at it before that point, it was absolutely anemic.

There -- they are light years beyond where they were.

It is bringing up the harsh realities about russia in the 1990's. also, we are light years beyond that.

Because russians are so used to the hoarding behavior and wages -- if you look over the weekend, cottage cheese is gone.

Parmesan cheese is gone.

It is adapting to whatever the reality is.

It will not be permanent.

It is a temporary state.

In the european union, you have countries on the eastern periphery -- finland and the baltic states.

They're all exporting 10-15% of their dairy products to russia.

They are gone, halted at the border.

So, you have these markets that are looking to european internal markets.

There is a crisis for food goods.

There's a problem there as well, right?

There's a good and bad part.

Those products may not be gone.

They may be marketed to other parts of the european union.

And, this should mean lower inflation and not necessarily a bad thing.

To brendan's point, can we do want key economics?

I am -- the economy is diminished before the inflation effects.

Poland wants to sell apples to germany.

Russia will not take them.

Russians are used to this.

The difference for me is the syrians.

If we do sanctions against south africa, that is one nation.

We are doing it to six, seve,n, eight countries.

The flipside is it will have an economic impact.

Behind the inflation, it will have economic impact on trade.

How much is the russian economy going to slow?

Exxon is now drilling in the arctic.

The sanctions are against oil, but not gas.

They do not have existing contracts.

They do have teeth for new business.

I think that is the headwind that markets are reacting to.

It is all driven by expectations.

Not only what oil and gas is produced today, but what is going to be produced two years from now.

The sanctions are hampering that.

To come back to trade issues for second -- european exports was a strong point, in the midst of an anemic recovery.

That has propelled them.

Will jpmorgan say we are going back to recession?

No, but it does create downside risk that they will

This text has been automatically generated. It may not be 100% accurate.

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