Russia has
banned U.S. poultry imports as part of a decree signed by President Vladimir Putin ,
the country's veterinary service said Wednesday. Putin earlier signed an order
banning or limiting imports of agricultural products from countries which have
imposed sanctions on Russia.
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Putin ordered his government to come
up with a list of goods to be banned for imports into Russia and to last one
year, the Kremlin said. The order says the limits are being imposed "with
the goal of guaranteeing the security of the Russian Federation" and calls
for undertaking measures to guard against quick price hikes. The decision on
U.S. and EU food import bans would be "quite substantial," the
veterinary service said.
The move follows the latest round of
sanctions against Russia imposed by the European Union last week, which for the
first time targeted entire sectors of the Russian economy.
The U.S. and the EU have accused
Russia, which annexed Ukraine 's
Crimean Peninsula in March, of fomenting tensions in eastern Ukraine by
supplying arms and expertise to a pro-Moscow insurgency, and have imposed asset
freezes and loan bans on a score of individuals and companies.
Some U.S. poultry producers,
including Pilgrim's Pride (PPC) and Tyson Foods, (TSN)
were still trading in positive territory after the announcement.
The threat of a Russian ban on U.S.
poultry imports had agriculture companies alert to the risks of a conflict
that's already roiled trading of crops ranging from soy, beef and fruit to
California pistachios.
Moscow had previously struck back
against sanctions by imposing food restrictions, and would add U.S. chickens to
Ukrainian soy and other products Russia has blocked since it seized Crimea:
Australian beef, Latvian and Lithuanian pork, Moldovan fruit and Ukrainian
juice.
Sanderson Farms (SAFM),
the third-largest poultry producer in the U.S., was among American agricultural
companies preparing to respond if Russia carried out plans to restrict imports
of U.S. poultry.
Russia was "using foreign trade
as a political football" by threatening to limit poultry imports,
Sanderson's Chief Financial Officer Mike Cockrell said. The Mississippi-based
company was lining up other buyers for its chicken in case Moscow imposed a
ban.
"We'd be crazy not to be making
calls to alternative markets right now," he said.
Russia's move to limit agricultural
trade is seen as a sign the conflict with Washington is heating up. Russia
imported about $1.3 billion in U.S. food and agricultural products last year,
or about 11 percent of all U.S. exports to the country, according to U.S.
Census data.
-By Reuters and The Associated
Press. CNBC.com contributed to this report.
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