Brendan Smith (Cavan-Monaghan, Fianna Fail)
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6. To ask the Minister for Foreign Affairs and Trade the impact of sanctions on Russia on trade to and from Ireland; his position on the issue of sanctions; if he foresees the lifting of sanctions in 2015; and if he will make a statement on the matter. [2603/15]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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This is an extremely important issue. As Russia is the third largest non-EU export market for Irish goods after the United States and China, the ongoing tensions between the EU and Russia over the crisis in Ukraine are creating serious obstacles for Irish exporters to Russia, according to the Irish Russia Business Association. I understand that companies, particularly in the Irish agrifood sector, have been hit hardest by the retaliatory sanctions against the European Union and the concerns of these companies, particularly in the agrifood sector, are growing. These companies are really worried about the continuation of these sanctions and the lack of a resolution.

Dara Murphy (Cork North Central, Fine Gael)
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I thank Deputy Smith for his question and his interest in this area. Of course, he is correct that this is a serious situation in Ukraine.

In July and September 2014, the EU agreed a package of restrictive measures against the Russian Federation on access to capital markets, trade in arms, dual use goods and access to sensitive technologies, particularly in the field of energy.

When the sanctions were introduced our initial assessment was that their impact on our bilateral trade with Russia would be modest given that the vast majority of goods exported from Ireland to Russia are not subject to the targeted EU restrictions. This has been borne out by recent trade figures which show that merchandise exports to Russia from Ireland for the first 11 months of 2014 amounted to €693 million. This represents an increase of 16% on the same period in 2013. As for imports from Russia, these amounted to €213 million for the first 11 months of 2014, representing an increase of some 60% compared to the same period in 2013.

The sanctions were imposed in response to Russia's actions in Ukraine and with the clear aim of encouraging a change in its behaviour towards its neighbour. They are clearly having an effect on Russia's economy and they remain a key element of the EU's approach to the crisis in Ukraine. The measures can be strengthened or eased in light of developments on the ground and progress made towards the objectives set by the EU when they were put in place. Whether they can be lifted in 2015 depends on the extent of this progress.

I remain of the view that the restrictive measures against Russia, coupled with open dialogue and continued political and diplomatic engagement with the various sides involved in the conflict, offer the best way of creating the conditions for a peaceful resolution of the crisis.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank the Minister of State for his reply. In regard to his concluding remarks on the possible easing or strengthening of sanctions, is there any indication from his discussions at European Union level of which way we are likely to go?

I instance, in particular, the difficulties facing the pigmeat sector. Quite a number of years ago, both State agencies and individual companies made significant efforts and progress in opening up the Russian market. It is an important market for pigmeat exports from this country. The individual pig producers and pigmeat processors are concerned about the non-availability of that market, not only to Ireland but to the other European Union 27 members some of which, particularly those in Central Europe, have had a strong export market in pigmeat to Russia as well. We are experiencing the effect of the ban on an Irish product, but also on products from the other 27 member states which is creating a glut and oversupply on the European Union domestic market.

Dara Murphy (Cork North Central, Fine Gael)
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There were two elements to Deputy Smith's supplementary. First, as he will be aware, the current sanctions are having an impact and, as I stated, they remain the key element of the European Union's approach to the crisis. We have always stated that Ireland believes restrictive measures are scalable, in both directions. They can be strengthened or eased depending on developments on the ground and progress towards the objective set out by the Union when we put the existing measures in place. It is vital that unity and consistency remains a part of the response to the crisis from the European Union to Ukraine. It is important we remain resolute and united in our strategic approach to Ukraine and in our efforts to create the conditions that can lead to a peaceful crisis.

With respect to pigmeat, as Deputy Smith will be aware, there have been continued efforts, and some successes, in opening new markets in that regard. Russia remains a major strategic market for Irish dairy produce. Regarding the impact on beef exports, there has been no clearly discernible impact on prices in the Europe Union - in fact, with them strengthening - but we are aware of the difficulties being caused to many Irish food exports due to the retaliatory sanctions imposed on us by Russia.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I emphasise it is not only that Irish products are excluded from Russian markets but that the products of the other 27 members states are excluded as well and those products seek shelf space in what one might call the western part of the European Union.

The Minister of State, Deputy Dara Murphy, will be aware of the importance of the pig producing sector in the north of his county, particularly in the Minister of State, Deputy Sherlock's, area, and from Edenderry and north Tipperary, the Minister, Deputy Charles Flanagan, will be aware of the importance of Rosderra, and the industry that supplies the raw material to those plants. Over the years, those companies, supported by State agencies, did excellent work in sourcing new markets. There has been a significant, and unfortunately, negative, impact on prices paid to primary producers.

Could the Minister of State inform the House whether individual member states in the European Union have been able to negotiate an exemption from the imposition of sanctions for individual products, and if such process is available, would he ensure that efforts would be made to exempt those key products in the general agrifood area?

Dara Murphy (Cork North Central, Fine Gael)
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With respect to developing markets, the Deputy will be aware that, in December last, senior officials at the Department of Agriculture, Food and the Marine met their counterparts in Moscow to discuss the temporary restrictions not covered by the presidential ban.

As I stated, there has been some success. The Minister for Agriculture, Food and Marine, Deputy Coveney, led a trade mission to China, which is a crucially important growth market for Irish food and drink. There was also the opening up in the Philippines of new markets for Irish beef, pigmeat - as Deputy Smith mentioned the pigmeat sector is of strategic importance - and sheepmeat. We acknowledge, as Deputy Smith mentioned in his question, that given the sanctions, the issue of displacement is having an additional consequence.

However, we must remember the reason for the sanctions and the great difficulty the people of Ukraine are suffering. The continuation of work on the ground and at diplomatic and EU level to secure an improvement in the situation is required.