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Russian Sanctions Cost EUR 80 million


Russian sanctions could cost up to EUR 80 million (246 billion HUF) to Hungarian agricultural export, tweeted Minister of Foreign Affairs and Trade Tibor Navracsics, reported news agency MTI. The Wednesday tweet ended with a brief statement: compensation from the European Union is needed.

The third stage of European Union sanctions against Russia came into effect on August 1. The goal of the embargo is to limit Russia’s access to international trade and goods, including a ban on dual-use industries (technologies usable for both civilian and military purpose). Russia in response to the EU sanctions created its own embargo, limiting mostly European agricultural products.

EU trade commissioner Karel De Gucht spoke about possible compensations last Friday, saying the EU has an available compensation fund of EUR 400 million for agricultural companies of the member states. France and Greece farmers, and the Polish government have all called the EU to compensate their losses.

Far-right party Jobbik already called on compensations from Brussels, demanding a sit down with Russia as well. The Russian crafted embargo includes beef, pork, fruit, vegetables, chicken, fish, cheese, dairy products, originating from the EU, USA, Australia, Canada or Norway. The ban should be in effect for a year as fights continue in Eastern Ukraine. (MTI)