Development of the aquaculture sector in Russia is far below its potential. Current annual production is estimated at 160,000 MT, or three to four percent of total fish and seafood production in Russia. Russia’s share of world aquaculture production is estimated at only 0.2 percent. Lack of government support, outdated equipment and production technologies, as well as a deficit in feed, are major constraints to further development of the sector.
Author Archives: CrispConsulting
Russian food ban will not lifted until the sanctions against Russia are in effect
The EU has extended the sanctions against 146 Russians and inhabitants of the segregated East Ukrainian regions, and against 37 organizations, by six months. As a response to the extension, the Russian prime minister Dmitry Medvedev repeated his earlier words: the boycott will only be lifted when the sanctions by the Europeans are also lifted. “They (Russia’s countermeasures) will come to an end sooner or later,” the prime minister told press agency Tass. “That’s for sure. But of course we will keep the measures in force as long as there’s external pressure. There shouldn’t be any false hope in that respect.” He also warned that Russia will react if the European sanctions are extended. Finally, the prime minister said the Russian government will keep supporting the agricultural sector.
At the same time, smuggling of fruit and vegetables from boycotted countries to Russia is continuing. In response, Russia frequently intercepts products that don’t meet the import requirements. Destruction awaits for products from boycotted countries. Products from other countries that do not meet the requirements are generally sent back. An overview from last week: 105 MT (pears, onions, dried fruit, pepper, grapefruit and wheat flour) from China, Tajikistan and Kazakhstan was sent back because the accompanying documents weren’t in order, according to Rosselkhoznadzor.
A shipment of tomatoes from Turkey was discovered in the Voronezh region. The products were taken off the market. At the checkpoint in the Chelyabinsk region, 345 kilos of Italian kiwis were intercepted. The kiwis were destroyed. 40 tonnes of radish from Kazakhstan were sent back due to violation of the phytosanitary rules. In the Orenburg region, the inspection found 33,224 kilos of Turkish tomatoes with the wrong labels. The tomatoes were destroyed. More than 700 tonnes of Polish apples were intercepted. The apples were destroyed. A shipment of 20 tonnes of apples of which the country of origin was unclear, was destroyed. The inspection found 19.5 tonnes of tomatoes from Spain. The tomatoes were also destroyed.
Russian import of South African oranges – 30% less
According to the official statistics from the Russian government, last year 30 percent fewer oranges were imported from South Africa than in 2014. Russian president Putin and his South African colleague Zuma had called for increased trade in August. According to traders, a stricter measure for trade is the main cause for the decrease. Since February 2015, an EAC mark is needed. The mark consists of a sticker with information about the grower and the product in Russian. Since Russian is an unknown language in South Africa, many errors are still made with the marks.
Russia wants Dominican fruit and veg
The Dominican Minister of Agriculture, Ángel Estévez, received a delegation from the Russian Federation to discuss trade matters related to the purchase of Dominican fruit for export.
The Russian delegation expressed its interest in buying tropical fruits for processing and freezing so that they can be exported to that country without any loss in their properties, as they are considered as the best in terms of both taste and aroma by consumers worldwide.
They confirmed their interest in buying organic cocoa, mangoes, avocados and other fruits, as well as some vegetables, to pack and ship them to Russia and other nations in the region.
The Russian delegation’s members were Elena Lanskikh, Anatoly Musauv, Marina Ustinova and Elena Alekhina, who served as interpreter during the meeting.
Russian ministry invests in agriculture
The Russian Ministry of Agriculture recently presented ambitious plans. 1500 hectares of greenhouses are to be built in the next five years, the harvest of tomatoes and cucumbers is to rise to 850,000 tonnes. 65,000 hectares of apple orchards are also to be planted, which should raise the harvest by 1.3 tonnes. To do all of this 270 billion roubles (3.4 billion Euro) is needed, the ministry has calculated.
How sanctions influenced export from Denmark to Russia
According to Denmark’s Statistics Department (“Danmarks Statistik”), in 2014, exports from Denmark to Russia amounted to $1,414.6 million, that is 26.2% less than in 2013 the year when Danish exports amounted to $1,918.0 million. In 2015, the Danish exports to Russia fell by 46.2% compared to 2014 and by 60.3% compared to 2013 and totaled $761.6 million.
Faroe Islands and Greenland, which are integral parts of the Danish Realm, are self-governing countries, that is why they were not included into the list of the countries from which Russia banned importing some kind of agricultural products in August 2014. Hence, since the sanctions were introduced, import from these territories increased, mainly this concerned fish and seafood.
According to the Russian customs statistics, export to Russia from the Faroe Islands in 2015 grew by 60.3% up to $277.2 million. 99.99% of deliveries from the Faroe Islands in the total volume of exported products in 2015 is fish and seafood. Exports to Russia from Greenland in 2015 grew by 136.2% up to $58.8 million, that is 41 times more than in 2013. Almost 100% of products exported from Greenland to Russia is fish and seafood.
Russia banning Moldovan fruit and veg imports through Belarus
From 14 March, Russia will be prohibiting the importation of plant products from Moldova through Belarus, as reported by the Rosselkhoznadzor. The decision has been adopted after inspections revealed that Moldovan companies were allegedly supplying Russia with “unregulated products”.
The Rosselkhoznadzor recalled that, following the decision to allow the supply of plant products last year, there was a “sharp increase in the traffic” of products from Moldova to Russia “with complex logistical routes” through Belarus; the Office suspects that these may actually be re-exports from countries that are currently affected by the embargo.
Now Moldovan fruits and vegetables can only be imported through the border points located in Belgorod, Kursk and Bryansk, i.e., on the border with Ukraine.
It is worth recalling that, on 21 July 2014, the Rosselkhoznadzor banned Moldovan fruit exports to Russia. Officially, the decision was taken because of irregularities in the products’ condition and the presence of the Eastern moth, although it happened after Moldova signed the EU Association Agreement for the establishment of a free trade zone.
After seven months, however, the agency allowed the import of Moldovan apples from a few selected companies.
Russia closes borders to Turkish trucks
The boycott of Turkish products has huge consequences for the Turkish economy. The export of fruit and vegetables decreased strongly. In January 2015 the country exported 215.2 million dollars worth of fruit and vegetables. This year in the same month it was 132.7 million dollars.
But another drama for the Turkish economy has been added unnoticed. Russia has not extended an agreement on transport and passage of trucks at the border. The treaty ended on February 1st. This means that Turkish trucks cannot cross the border and are denied access not just to Russia, but also to the Central Asian Hinterland. Russia is also making it difficult for Turkish transporters for temporary licenses. The alternative route by ferry through Azerbaijan has insufficient capacity.
US, EU extend sanctions against Russia for Ukraine action
U.S. President Barack Obama extended Executive Order 13660 on Wednesday, which outlines the sanctions against certain Russian individuals and entities over Moscow’s role in the Ukrainian crisis.
Moscow said it regrets Washington’s decision to extend the sanctions against for another year.
In addition, the European Union has also decided to extend its sanctions on 149 Russian and Ukrainian nationals that it sees as responsible for the conflict in Ukraine for a further six months. The list includes senior Russian politicians and close allies of Russia’s President Vladimir Putin.
Relations between Moscow and the West deteriorated sharply over Russia’s annexation of Crimea from Ukraine almost two years ago. The U.S., EU, and some other countries imposed several rounds of sanctions on Russia’s energy, banking, and defense industries.
Moscow responded then with a EU and U.S. food import ban. It’s not clear if Russia will respond again with any counter measures, Russians are divided over how the government should react.
Plant products from Liberia, Kenya and India cannot be imported to Russia through Belarus
Since March 1, the Russian Federal Service for Veterinary and Phytosanitary Surveillance stops the supply of plant products from Liberia, Kenya and India through Belarus. The ban is introduced because as the Service is not sure in the authenticity of the provided certificates and suspects that the real countries of origin of fruit and vegetables are European countries, which cannot export products to Russia because of the Russian Food Ban. The main reason for the suspicions is the fact that imported products are not typical for Kenya, Liberia and India.