Adaptation of the Russian Food Market to the Contemporary Geopolitical Challenges: Bans vs Liberalization

Abstract

Domestic markets of agricultural commodities are increasingly influenced by trade integration and liberalization. Current uncertain political and economic relations in the macro-region of the Commonwealth of Independent States (CIS), Eastern and Western Europe, international tensions around Russia-Ukraine problem, bilateral economic and trade sanctions between Russia and such global economic powers as the USA and the EU transform market patterns and affect agricultural production, rural development and food security in both the CIS and worldwide. The chapter aims to discover the expected influences of such trade restrictions on trade in agricultural commodities, to assess the degree of distortion and return effects on domestic food markets. Chapter specifically addresses possible effects of trade restrictions between the EU, the USA, and other countries from one side, and Russia from the other, particularly imposed ban on agricultural trade. It is concluded with the overview of the expected influences of trade tensions on Russia's domestic food market.