August 7, 2014 — Norwegian salmon farmers including Marine Harvest ASA (MHG), the world’s largest, slumped in Oslo as Russia retaliated against economic sanctions with import bans on food products including fish.
Marine Harvest, controlled by billionaire John Fredriksen, fell as much as 12 percent in intraday trading, the most in more than six months, while Leroey Seafood ASA dropped as much as 9.6 percent, Salmar ASA (SALM) 9.9 percent and Cermaq ASA (CEQ) 8.2 percent. Oslo’s 13-member Seafood Index slumped as much as 9.3 percent, the most on record.
Russian Prime Minister Dmitry Medvedev said today that the country will ban all cheese, fish, beef, pork, fruit, vegetable and dairy imports from countries that have imposed sanctions on Moscow over its support for separatists in eastern Ukraine. Norway, while not a member of the European Union, has said it will probably follow the latest set of EU sanctions that target Russia’s finance, energy and defense industries, and is among the countries targeted by the bans.
“There’s a lot of uncertainty,” Nordea Markets analyst Kolbjoern Giskeoedegaard said by phone. “If there’s a full ban, we’ll get a period with a significant price fall.”
Read the full story at Bloomberg Businessweek