THE IMPACT OF RUSSIAN FOOD EMBARGO AND EXPORT PROMOTION POLICY ON AGRI-FOOD TRADE BETWEEN THE EU AND THE EEU

Annotation: Having restricted the imports of certain agri-food products from Western countries in 2014, Russia consistently conducts a policy aimed at import substitution and promotion of agri-food exports. Such policy impacts on economic growth prospects, food and nutrition security in Eurasian Economic Union (EEU) member states as well as their trade with other partners, including the EU. Despite the fact of Russia's food embargo imposition and consequent trade shift towards Asia-Pacific region, the EU remains the main trading partner for the EEU. This paper is addressed to trade patterns changes in EEU agri-food market as well as transformation of trade flows between the EU and the EEU influenced by Russian food embargo policy. The rates of substitution of EU food products by EEU domestic production are estimated for selected commodities. The conditions for Russian agri-food export expansion in the EEU market are assessed, as well as the main risks for further trade development between the EU and the EEU are identified.