Embargo

The United States and Cuba made a historic breakthrough in their Cold War stand-off Wednesday, moving to revive diplomatic ties and launch measures to ease a five-decade US trade embargo.

In the wake of a prisoner exchange, President Barack Obama said the United States was ready to review trade ties and to re-open its embassy in communist Cuba that has been closed since 1961.

When Russia imposed a one-year embargo on food products from the EU in August, the news caused little stir among Romanian dairy producers as the total value of their exports to Russia was only around 1 million euro per year.

Two months later, they are feeling hard hit by the embargo, as many cheaper EU products have since flooded the Romanian market.

BRUSSELS - Serbia is making resolute strides towards EU membership despite its refusal to impose an embargo on Russia, Serbian Foreign Minister Ivica Dacic, who is also deputy prime minister, said in Brussels on Friday.

Russia's ban on imports of food from Europe, could cost the European Union EUR 5 B a year, according to an internal EU document quoted by Reuters.

Russia, which is the EU's second biggest food market after the United States, decreed the one-year ban on August 6 on European fruits and vegetables, dairy products and meat, accounting for almost half of the bloc's food exports to Russia.

Despite the Russian embargo, Greek peach exports have posted major growth so far this year, reaching 141,000 tons from 112,000 tons in the first eight months of 2013, a Development Ministry committee heard on Monday.

Still, peach producers will see their revenues decline this year as prices will drop.

The EU may file legal action the World Trade Organization (WTO) over the Russian food embargo, according to EU Trade Commissioner Karel de Gucht.

De Gucht said in an interview for German newspaper Frankfurter Algemeine Zeitung that the complaint was being prepared and it could be filed in mid-September, adding that no final decision had been made on the step.

 Impact of Russia-Ukraine conflict and uncertain European economic outlook feared by officials

By Sotiris Nikas

At a time when the Greek economy is displaying what appear to be early signs of recovery, following six years of deep recession, a series of external factors are threatening to undermine the effort being made.

Greece has appealed to the European Commission for a revision of the method applied to calculate the distribution of national compensation amounts for European Union peach and nectarine farmers affected by the Russian trade embargo on numerous agricultural products produced in the bloc.

A total of 33 million euros has been allotted as compensation money for these producers.

Prime Minister Vucic said on Friday that Serbia would “respect the will of the European Union" when it comes to the Russian ban on EU food imports.

"EU membership is our main goal," he added, noting at the same time that Serbia intended to "maintain good relations with the Russian Federation".

The European Commission on Aug. 18 announced a series of exceptional measures to help growers hit by a Russian ban on fruit and vegetable imports.
      
The products in question are in full harvesting season, with little hope of finding alternative markets to replace demand from Russia in time, the Commission said.