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She said inflation could grow by 0.8% in 2014 and 0.7% next year because of the food import ban imposed by Russia against Western countries in response to their sanctions.
Nabiullina said these were “very tentative” figures and much would depend on how fast the Russian economy adapted itself and substituted imports.
On August 6, Putin signed an executive order on countermeasures to Western sanctions.
The document entitled “On the Application of Certain Special Economic Measures to Ensure the Security of the Russian Federation” prohibits or restricts, for one year, the import of certain kinds of agricultural products, raw materials and food originating in a country that has imposed economic sanctions against Russian companies and (or) individuals or has joined such sanctions.
The Russian government was given relevant instructions. In particular, it was instructed “to take measures to ensure balanced goods markets and prevent accelerating price rises for agricultural products and foodstuffs; to organise together with regional authorities timely monitoring of goods markets; and act together with associations of goods producers, retailers and organisations to take measures to increase supply of domestic goods”, the executive order said.
On the same day, Prime Minister Dmitry Medvedev signed a resolution banning the import of beef, pork, cheese, fowl, milk, and fish from the European Union, the United States, Australia, Canada, and Norway for one year.
The ban came in response to the Western sanctions imposed against Russia by the US, the EU, Canada, and Japan.