January 18, 2018

EU Sanctions against Russia Benefited these Islands

EU Sanctions against Russia Benefited these Islands

The sanctions imposed on Russia by a number of Western countries and Russia’s counter sanctions helped the Faroe Islands, which are part of Denmark but not part of the EU. With EU sanctions in place, almost all fresh salmon imported to Russia comes from the Faroe Islands.

For Europe, sanctions have given mixed results. For example, in Germany in 2014, exports to Russia fell by about $ 7 billion, or 18%, compared with 2013 year. But for the Faroe Islands, these restrictions have been beneficial. Faroe Islands were the only major supplier of salmon, which did not affect the prohibition on the importation of the products in Russia. In addition, the islands are located close enough to Russia, that allows you to send fresh-frozen fish.

From September to December 2014, Russia’s share in the exports of salmon from the Faroe Islands has risen to 40% from 7% in the same period a year ago. In just four months in Russia bought fish worth $ 79 million. In addition, the average price of fresh salmon purchased by Russia from the Faroe Islands, was $ 3.13 per pound, which is 25% more expensive than in other countries, writes The Wall Street Journal, referring to the Statistical Office of the Faroe islands.

Faroe Islands depend on the sales of fish more than other exporters of fish products: in 2013 for fish accounted for 95% of the exports and 40% of the total output of the economy of the territory. That is why the island authorities found it possible to go into open conflict with Denmark, having decided not to stop the supply of fish to Russia and even increase them.

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