Prague - Potential compensations for farmers due to Russian sanctions should be solved mainly on the EU level within the agricultural policy, Prime Minister Bohuslav Sobotka said at today´s press conference after meeting with Finance Minister Andrej Babis.
Předseda vlády Bohuslav Sobotka navštívil 7. srpna prvního místopředsedu vlády a ministra financí Andreje Babiše v pražském sídle jeho úřadu. Na snímku je premiér Bohuslav Sobotka na tiskové konferenci v závěru setkání. ČTK Doležal Michal
Babis noted that the impacts could not be exactly estimated at the moment. "Food surpluses from the EU can have devastating effects on our industry," he said.
"If there are major impacts within the sanctions, the topic will have to be opened at the European level," Sobotka said.
For example, mechanisms within the Common Agricultural Policy (CAP) can be used, he added.
"I consider it unfortunate, it will escalate the situation and no one knows what impacts there will be," Babis said.
He noted that food surpluses from other EU countries will be influencing also the Czech market.
Czech food maker Hame said today it would demand compensation of possible losses and lost investment, caused by limits imposed on supplies on the Russian market.
Russia is an important market for Hame. The company expects to sustain losses of hundreds of millions of crowns there if the situation worsens, following the ban on imports of food and agricultural produce to Russia.
"Hame will be alright because it has own production in Russia so I do not know why we should compensate it," said Babis, who owns food group Agrofert.
Russian Prime Minister Dmitri Medvedev announced today that Russia has banned imports of fruit, vegetables, meat, fish and dairy products from the EU and USA, agency AP reported today.