Agriculture, EU – Baltic States, Financial Services, Latvia, Legislation, Markets and Companies

Steinbuka said that according to 2013 data, Russia's embargo affects Latvia's exports in the amount of EUR 50 million, about half of which is composed by milk and dairy products. The European Commission will not be able to cover all the losses, however, the EU's support could be equal to that provided by the Latvian government, Steinbuka said, adding that "Brussels is aware of the problems that currently affect the Baltic dairy producers."

She said that at the moment there could be two types of support at hand: short-term support could provide funds for market intervention to buy and store milk powder and butter, thus de-saturating the market, while long-term support could involve subsidies.

Steinbuka also said that business owners must not rely only on state and EU support but seek new export markets. She praised the Latvian government for its efforts to promote exports to China.

Decisions on possible EU support for dairy farmers are expected to be taken on September 5.