UK firms have been hit by a Russian ban on food imports from a number
of Western countries.
The tit-for-tat ban, imposed on Thursday, bars imports from countries
which have imposed sanctions on Russia over the conflict in Ukraine.
"It will have a big impact on business," said Sinclair Banks, boss of
fishing and fish processing firm Lunar.
The firm, based in Peterhead in north-east Scotland, makes half of its
£60m annual turnover from exports to Russia.
"We've £200,000 of herring sitting at St Petersburg, we don't know if
it will go through or even if it will be paid for," said Banks.
He added that Lunar had already cancelled a boat exporting herring
because of the sanctions.
Some 320 miles south, Shropshire cheese-maker Belton Cheese is also suffering.
Justin Beckett, managing director of the family business, said it had
already had to cancel a £30,000 cheese order due to be sent to Russia
on Monday.
"As you can imagine it's very disappointing. Russia was a very new
market, about 2-3 per cent of our business, but we had an expansion
plan for the next two to three years."
Beckett said this expansion had been expected to bring in up to £2m
over the next three years.
Larger firms, such as B&Q owner Kingfisher, have also warned they
could be affected.
Kingfisher chief executive Sir Ian Cheshire told BBC Radio 5 live it
was "sensitive" towards any potential disruption.
"We're clearly concerned that if it went further it would impact us
and we're just having to wait and see and also try and switch where we
can to more domestic sources [for products]. But the market
longer-term for us there is still a solid one," he added.
Waitrose managing director Mark Price told 5 live that Western goods
due to be exported to Russia might now look to be sold in the UK.
"Europe's a huge market and Britain's just one part of it. But if they
do find their way to the UK then that could well put some downward
pressure on prices," he said.
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