New EU Sanctions on Russia Include Sheep Exports

Ufa is actually the capital of the Russian Republic of Bashkortostan, also known as Ural Mountains. It’s located on the Riverside of the Belaya (White) River, which is located on the border of Mongolia and China. During the period of the Mongol domination, their largest city center was also located here. In fact, today this city is recognized as a crossroad between Europe and Asia, as it is connected by many roadways.


The total population of Ufa is about 1.7 million people, out of which more than half are dispersed in different parts of the Ural Mountains. They have their own language (inhabited by people who speak various Turkic languages) and culture. Besides, there are about 700,000 horses, many of them migrating to the steppes of Central Asia, some of them being found as far as China. However, the main industry of Ufa is cattle, particularly the Siberian herds. As of late, the herd of these animals has expanded worldwide.

When talking about livestock, the most important categories are cattle (over 2 million head), ostriches, zebras, wild deer, goats and yaks. The two most popular types of animal housing in Ufa are one-year and two-year ufa houses. A one-year ufa house usually means that it’s built with interiors which can be extended by an additional year. Meanwhile, a two-year ufa house offers the same facilities as a one-year structure but costs only slightly more.

Two years ago, the Government of the Russian Federation signed an agreement with the International Association of Energy Brokers or IEAO on boosting exports of agricultural products. The document stated that the measures would help improve the competitiveness of ufa production in global markets. Firstly, the Government decided to phase out the use of penal tariffs on sheep. According to the document, penal tariffs will be replaced by specialized export allowance for sheep and beef, respectively. Secondly, the use of excessive subsidies on ufa production will be prohibited. According to the document, the Government hopes that the measures would encourage manufacturers to increase production, leading to an increase in production of spare parts, which would help reduce the burden on the producers.

In addition, the Government decided to sign one-year contracts for thermal units and heat pumps, instead of long-term ones. According to the document, the longer a producer is obliged to wait for an export licence, the lower his risk of losing customers. Also, the longer the period he has to wait for a licence the more expensive he will find his thermal units or heat pumps, thus causing him to bear more losses.

Furthermore, the Government decided to expand the area covered by its ufa regime, in line with the objectives of the strategy. For example, it decided to extend the area up to the sea bed and up to 20 nautical miles. This means that the ban on livestock trade imposed in 2021 will not be applied to the export of fish and other seafood products, nor will the ban on meat and eggs apply to poultry and eggs. It was not mentioned what other sectors might benefit from such an expansion, but it is expected that further expansion will follow, leading to the coming about of a new ufa regime covering a wider range of exports.