Russian President Vladimir Putin signed Wednesday a decree prohibiting or restricting imports of agricultural products from countries that have imposed sanctions against Russia, a group that includes Denmark. If Russia makes good on its threat to stop all imports of Danish agricultural products, it has the potential to cost the sector billions of kroner.
“It is difficult to say how strongly such a boycott will hit the Danish economy, because we do not know exactly what would be included in the boycott,” Steen Bocian, head economist at Dansk Bank told Børsen.
Some sources say the ban would only cover fruits and vegetables, while other say that things like milk and cheese would also be kept out.
Just a flesh wound
“Danish agricultural exports to Russia amount to about 5.8 billion kroner, including farm machinery,” said Bocian. “That is about 4 percent of total agricultural exports.”
Bocian predicted that while the initial impact could be tough, most of the items that were locked out of Russian markets could be sold elsewhere, so while countries like Poland and Finland could suffer a big hit, the net effect on the Danish economy would actually be rather small.