Peterhead firm loses order amid Russia sanctions

The Russian government has imposed a range of sanctions against EU producers

A Peterhead fish processor has revealed it has already had an ordered cancelled following the imposition of sanctions against the EU by Russia.

Lunar Freezing was due to ship herring to Russia on Monday but that is now not happening.

The Scottish government had said it was concerned at the effect the situation could have on Scottish exports.

Other commodities, including other seafood, animal foodstuffs and dairy products could also be affected.

Scotland exports £45m of food and drink to Russia annually.

Ministers are seeking meetings with industry leaders to discuss the impact of the embargo.

The Russian action is in response to sanctions over Ukraine.

Crimea

The first round of sanctions came after Russia annexed Ukraine's Crimea region in March.

President Vladimir Putin announced on Wednesday that Russia would take retaliatory sanctions, saying they would last for a year.

First Minister Alex Salmond said: "The Scottish government continues to make our concerns about the situation in Ukraine clear and we fully support EU sanctions against Russia.

"This action by Russia will clearly have an impact on some sectors within the Scottish economy, most notably on the mackerel industry which exports £16 million worth to Russia annually from the UK.

"The Cabinet Secretary for Rural Affairs, Food and Environment, Richard Lochhead, has already spoken to representatives from the fishing industry and will be meeting with industry heads as a matter of urgency."