Russia says it's introducing a 'full embargo' on most food imports from Australia, the European Union, United States and several other western countries.
"Russia is introducing a full embargo on imports of beef, pork, fruit and vegetable produce, poultry, fish, cheese, milk and dairy products from the European Union, United States, Australia, Canada and Norway," Prime Minister Dmitry Medvedev said.
"Of course this is a serious decision for the suppliers of such foods from these countries."
"There is nothing good in sanctions... and the response did not come easily to us, but we had to take it," he said, promising to "prevent price increases" and use the embargo to "clear the store shelves for our producers".
The ban is set to go into effect immediately and will last for a year.
It follows sanctions set by those countries against Russia, over it's policy on Ukraine.
Australia disappointed by sanctions
In a statement, Foreign Minister Julie Bishop said it's disappointing that Russia has retaliated rather than adhere to international concern and stop the flow of weapons to Russian-backed separatists in Ukraine.
It's believed Russia supplied the weapon that was used to down flight MH17 over eastern Ukraine, killing 298 people, including 38 Australians. Russia has denied these claims.
"The Australian government will do everything in its power to minimise the impact on Australian agricultural producers," she said in a statement to AAP.
She also noted Australia had acted in line with others in the international community in imposing sanctions on Russia.
Last year, Australia's food exports with Russia totalled $345 million, including $206 million worth of meat products.
Overall, Australian exports with Russia are worth around $738 million and trade between the two countries is worth more than $1.7 billion.
Trade Minister Andrew Robb's office echoed Ms Bishop's disappointment over the sanctions but said the minister had to consider Russia's statements and the implications of those before making further comment.
Australia's exports to Russia in 2013 (DFAT)
EU ready to take action
The European Union's executive warns it is ready "to take action" over Russia's decision to restrict imports of EU food and agricultural products.
"This announcement is clearly politically motivated," the European Commission said in a statement.
"Following full assessment by the Commission of the Russian Federation's measures, we reserve the right to take action as appropriate."
Exports of food and farm products from EU nations to Russia last year amounted to 11.8 billion euros ($A17.7 billion), or 10 per cent of the bloc's total agricultural exports.
Analysts have warned that protectionist measures will escalate inflation even though it may be a boon for local producers.
"The protectionist rhetoric from Russia has been gaining momentum," said analysts of VTB Capital in a research note Thursday, adding that restrictions had so far been "the primary reason behind elevated food inflation in Russia."
Flights over Russia might be banned
Medvedev also warned on Thursday that Russia could block overflights between Europe and Asia in retaliation for Western sanctions.
Medvedev said that closing the use of Russian airspace, which saves Western airlines large amounts in fuel costs, was a "serious measure" being considered in response to sanctions that have shut down Russia's first low-cost airline.
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