Legislation, Lithuania, Markets and Companies, Russia

On Thursday, Russia's President Vladimir Putin signed a decree that will ban all imports of agriculture and food products from the countries which have introduced sanctions against Russia.

"First, we should react very calmly. Without a doubt, some kind of a reaction was likely. We do not know very well yet what the list will be, whether it will be a full blockade or only a partial blockade, on which countries and how it will be imposed. But such a reaction was likely," said Grybauskaite in an interview to the national radio LRT.

The Lithuanian president underlined that this reaction violated all international obligations, including those of the World Trade Organization and Russia itself; however, such a reaction was mostly directed at Russian people. Grybauskaite estimates that if a share of Lithuanian companies loses only their profits or a share of their profits, but do not go bankrupt, then the ban of imports in Russia will mostly affect a common consumer.

"When we speak about a ban of food imports from outside, particularly from the EU countries or other countries, it will make a direct impact on Russian consumers, that is Russian people will have less possibilities to have a better choice, and it means that competition will decline, and food prices will highly likely rise. Therefore, once again the decisions of Kremlin aimed at as if condemning or taking revenge on the West will be directed solely towards people and residents of Russia itself," said Grybauskaite.

This blockade of Russia, according to Grybauskaite, is a sign for the Lithuanian business to diversify its markets and look for new ones. The president forecast that the impact on country's economy due to the Russian blockade would be insignificant; however, it may affect carriers mostly.

Grybauskaite does not think that due to Russian economic sanctions against the West, the European Union and the United States would ease their own sanctions.

"There should be no concessions made to an aggressor, who continues an open war and supplies arms to terrorists, and it poses a threat not only to Ukraine, but also to entire Europe, including the Baltic region, and we should not concede, neither fear the aggressor, as then he would never stop," said the president.