(DailyMail) - Russia have introduced trade sanctions on Australia which will block hundreds of millions of dollars worth of Aussie imports each year - but they will continue to import our wine.

Russia has banned agricultural products from Australia and other western countries after they imposed their own sanctions against Moscow over its policy in Ukraine following the MH17 disaster.

The retaliatory ban covers all imports of meat, fish, milk and milk products and fruit and vegetables.

But bizarrely, President Putin has approved the importation of Australian wine.

In 2013, Russia consumed $4.7 million worth of Aussie alcoholic beverages.

The federal government says it's disappointed by Russia's trade sanctions on Australia. Prime Minister Tony Abbott has confirmed that Australia are working towards harsher sanctions, now that Australian personnel are returning to the Netherlands.

Prime Minister Abbott was reluctant to strengthen sanctions against Russia whilst personnel on the ground were only 'within 20 or 30km from the Russian border.

Russian Prime Minister Dmitry Medvedev said on Thursday the 'full embargo' would come into effect immediately and last for one year, unless 'our partners demonstrate a constructive approach' in regards to sanctioning Russia.