The European Union is spending more than $167 million to soothe the pain being felt by fruit and vegetable farmers hit by Russian food sanctions.
The move comes as the trade war between the West and Russia intensifies, and looks likely to hit Europe's growth figures. Fears over the impact of chilling relations has already , reports GHN based on CNN.
Around $2.7 billion worth of fruit and vegetables were shipped from the EU to Russia in 2013, the bloc's single biggest export to the market. The package announced by the EU Monday will support producers of fruit and vegetables that are already in season and can't be easily stored.
Russian President Vladimir Putin, in a tit for tat move against Western sanctions, banned imported European cheese, American chicken and Norwegian seafood from the country's dinner tables. The move was in response to countries imposing economic sanctions against Russia in the aftermath of the flight MH17 disaster.
The Kremlin banned most agriculture products from the U.S., the European Union, Norway, Canada and Australia.
Europe's food exports to Russia were worth $15.8 billion in 2013, making up around 10% of the bloc's agriculture exports, according to EU data. European countries sold $1.6 billion worth of pork and $1.3 billion worth of cheese and curd to Russia.
The U.S. shipped $1.3 billion worth of food to Russia, with chicken and other poultry making up a quarter of the total value, around $310 million.
The ban of foreign food is more than just an inconvenience for Russians who like imported food. Russia is the world's fifth largest agricultural importer and remains dependent on food supply from abroad -- its agricultural trade deficit extended to $26 billion in 2013, according to data from the European Commission.
With billions worth of food disappearing from the market, prices are likely to go up and experts forecast increasedRussian inflation, which is already running at 7.5%.
Russians will still be able to enjoy European wines and spirits, as well as bread, pasta and cereals. These have escaped the embargo -- even though their ban would hurt Europe economically. In 2013, EU countries sold nearly $1 billion worth of spirits and $733 million worth of wine to Russia.