The consequences of sanctions


The consequences of sanctions

My subject is the current news in the field of business. First I’m going to give you the main points of this piece of news.

Valio is going to re-start exporting lactose-free products to Russia. As Russia decided to remove lactose-free dairy products from its list of banned foodstuff, Valio reports that it is ready to re-start the export as soon as possible.

The first products to reach the Russian stores will be lactose-free milk drinks, creams, quarks and cottage cheeses. The re-start of exports to Russian should not impact the availability of lactose-free products in Finland.

Russia and the EU have set each other sanctions as a consequence of the Ukraine crisis. The sanctions Russia has set have a huge impact in Finland. This is because now Valio has planned that it will make employees redundant or lay off workers. There is a risk that the ”Sanctionswar” will start: Russia set up a food sanctions that target hard and at the same time in Finland and many other Western countries. The food industry is the scapegoat.

I have wondering about the questions: ”Do sanctions have any significance, does it helps to solve this crisis? Will sanctions help resolve the problem itself.”  My opinion is that these sanctions don’t solve the crisis. The sanctions may force the parties to sit at the same table, but peace will be signed using the sanctions. In addition, it causes financial losses for companies. I can see why sanctions are set, but the issue should be resolved by other means.

Russia strikes back with its own economic sanctions

The crisis is political but sanctions are economic so the consequences are suffering bystanders (e.g. companies).  However, the sanctions that Russia has set also damage the Russian economy, for exampler higher prices.  Prices increase especially meat and poultry. In addition he sanctions also affect the producing countries.











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