Russian ag ban worries, but won't wallop, U.S. farm equipment makers
Posted: 8/11/2014 |
Russian President Vladimir Putin's announcement on Wednesday, Aug 6 that he plans to slap a one-year import ban on agricultural products from countries that have imposed sanctions on Russia is unwelcome news to U.S.-based makers of farm equipment.
But the move is unlikely to have a big impact on the near-term financial performance of companies like Deere & Co and Agco Corp because Russia accounts for a small part of their sales.
Even so, both companies expressed concern on Wednesday about the escalating trade fight triggered by Russia's support of Ukrainian separatists.
"We are closely monitoring the situation in Russia to determine how events will affect John Deere," Deere spokesman Ken Golden said in a statement.
"We have previously stated that Deere supports solutions that can be achieved without violence and in accord with international agreements."