On news that fruit and vegetable farmers across the Eurozone will be entitled to a payout if they are affected by sanctions on Russia, Zia Ullah, partner at law firm Eversheds, comments:
“The subsidies for farmers are the unintended consequences of economic sanctions, and are a reminder that with political intervention comes economic impact. This action may be the thin end of the wedge, given the potential for other industries to also feel the force of reciprocal sanctions. Ultimately, treating one sector favourably increases the risks of other sectors asking the EU to do likewise and a political snowball may turn into an avalanche for politicians across Europe.
“As such, actions like this may limit the extent to which the EU imposes further restrictions upon Russia, given the huge value of bilateral trade."