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Food Production Failing to Make up for Sanctions in Russia

In a report issued by the Russian Central Bank, food producers in the country are failing to meet the demand for products as a result of Russian sanctions with the European Union. 

The sanctions, which began in August 2014 had been expected to lead to a wave of production from Russian food producers to replace supply.

However, all that has really happened has been an inflation rate of up to 49% on some products such as cereals and beans. Some industries, such as the fish industry and sausage production have even seen a drop in production by 5% and 4% respectively.

The beef and potato industries have seen a rise in production by 25%, with growth also reported in that of dairy and other meats.

The Central Bank has said the development of the domestic food industry has not been enough for successful import substitution.

Russian sanctions on Western food products are due to end in August of 2016.

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