Market News

Russian Economic Recovery under Way in April Despite Sanctions

Written by

Retail sales in Russia picked up in April, while real wages growth exceeded expectations as the unemployment rate fell, suggesting an economic recovery was under way.

The monthly set of data released by the Federal Statistics Service, or Rosstat, indicated that sanctions that the United States imposed on Moscow in early April had little immediate impact on Russia’s fundamentals.

After two years of recession caused by a slump in oil prices and Western sanctions, the Russian economy is now recovering along with oil, the rouble has generally stabilized and global commodity prices remain favorable for an economy dependent on exports of energy and raw materials.

Retail sales, the key gauge for consumer demand, the primary driver of economic growth, were up 2.4 percent year-on-year in April after a 2.0 percent rise in the year to March. (more…)

Russia’s National Horticultural Union Asked to Ban Imported French Fries

Written by

Russia imported 94 percent of its French fries in 2017 but has bought the necessary equipment to produce it locally, Russia’s National Horticultural Union head Sergey Korolev said. The new equipment allows production of 110,000 MT a year, while the market is 106,000 MT. That is why Russia’s National Horticultural Union sent a request to the Russian government to ban imported French fries.

“The introduction of restrictions on the supply of imported frozen French fries, according to the Union, will not only support domestic agricultural producers engaged in the production of raw potatoes, but will also contribute to the preservation of jobs at newly established processing enterprises, and will increase the safety and quality of the product,” Korolev said.

The first plant to produce French fries opened in April. Domestic production is expected to replace imported French fries and fully satisfy the country’s needs. Russia has been deciding how to respond to the new US sanctions imposed in April.

www.rt.com

Russian McDonald’s to Start Using Home-Grown Potatoes

Written by

French fries at McDonald’s restaurants across Russia will be made with Russian-grown potatoes from now on, because of U.S. sanctions that have hit the Russian ruble and led to trade restrictions.

McDonald’s restaurants in Russia have already been using Russian ingredients for most other menu items, but until now they had relied on frozen French fries from the Netherlands and Poland because Russian potatoes weren’t quite right.

Now McDonald’s is making the switch to home-grown potatoes to deal with ruble’s volatility caused by fluctuating oil prices and western sanctions. A plant south of Moscow using potatoes grown on local farms will supply frozen fries to 651 McDonald’s restaurant across Russia.

The factory has capacity to process more than 200,000 tons of potatoes per year, washing, cutting and freezing the vegetables.

The ruble has recovered some ground as the price of oil, a major source of revenue for Russia, has risen from a low in 2016. But western trade restrictions remain in place.

Russia’s response to western sanctions included a 2014 ban on a range of western food imports.

www.freshplaza.com

Gross Harvest of Greenhouse Vegetables in Russia Grew Almost by 40% as of End of April

Written by

According to reports of the Ministry of Agriculture of the Russian Federation, the gross harvest of greenhouse vegetables as of April 28 was 235,200 MT, that is 39.5% more than in 2017 (168,500 MT) .

179,300 MT of cucumbers (27,7% more than in 2017), 51,800 MT of tomatoes (2 times more), and 4,100 MT of other vegetables (17,1% more) were produced.

The leaders in the production of greenhouse vegetables were Krasnodar region (22,800 MT), the Moscow region (17,700 MT), the Republic of Tatarstan (16,600 MT), Stavropol region (16,500 MT), and Lipetsk region (16,000 MT).

www.fruit-inform.com

Russia Lifts Sanctions on All Turkish Tomato Exporters

Written by

Russia has lifted sanctions on Turkish tomato exporters, state-run Anadolu Agency reported on April 27, citing Turkey’s Economy Ministry. Russia’s decision will completely pave the way for Turkey’s tomato export to Russia, the ministry said in a statement.

The move came after a meeting held between officials from the Turkish Economy Ministry and Russian Agricultural Ministry on April 26, the statement said.

It recalled that a limited number of Turkish tomato exporters were allowed by the Russian Agricultural Ministry to sell products to Russia. That nation had also imposed a 50,000-ton quota on imported tomatoes from Turkey in October 2017.

In January 2016, after Turkey downed a Russian fighter jet violating its airspace, Russia banned imports of Turkish fruits and vegetables including tomatoes, oranges, apples, apricots, cabbage, broccoli, mandarins, pears, peaches, cucumbers, plums, strawberries, onions, cloves, and poultry.

www.freshplaza.com

Turkish export figures of fruits and veg to Russia first quarter of 2018

Written by

Turkey has exported 74,119 MTof mandarin to Russia in the first quarter of 2018 and generated a revenue of $42.3 million USD in return.

East Black Sea Region Exporters Association President Ahmet Hamdi Gurdogan: “In order to develop the trade relations between two countries, it is imperative to lift the restrictions and form strategic partnerships. This is the only way two countries can full fill its potential in trade relations.”

According to the released figures, the exports of mandarin increased 31 % in volume and 36% in value compared to the first quarter of 2017. Mandarin is followed by lemon with 50,375 MT, oranges with 32,325 MT and apples with 22,625 MT.

From the East Black Sea Region in the same period, 51,196 MT of fruits and vegetables are exported to Russia generating a revenue of $30.8 million. 21,401 MT of these exports were mandarins which accounted for $12.2 million in trade.

President Ahmet Hamdi Gurdogan: ”The numbers display a 91% increase in exports of fruits and vegetables to Russia compared to last year’s first quarter. The rise in revenue is actually even higher at 112%. Turkey exports fruits and vegetables to Russia mostly and it has become the primary for Turkish fruits and vegetables. It is a huge market and we are trying to improve our share in this market even more. That’s why we select our best products for exports and Russian consumers started to prefer specifically Turkish products.

Most of the restrictions imposed by Russia which were put in place in 2016 due to political crisis between two countries, have already been lifted. However there are still some remaining restrictions regarding tomato exports where only certain firms are granted permission to export tomatoes. This creates unfair competitive environment for our growers and we would like this restriction to be removed as well. This way more Turkish growers will be able to export their tomatoes to Russia and Russian consumers will be able to access the products at a better price.

www.freshplaza.com

Russia’s Self-Sufficiency in Greenhouse Veg Production Exceeded 53% Last Year

Written by

Russia’s self-sufficiency in greenhouse vegetable production exceeded 53% last year, but it will be necessary to build another 1.5 thousand hectares of greenhouses in order to completely cover Russia’s domestic needs.

In 2017, agricultural producers received 118 billion rubles in preferential loans. This is 25% of the total volume of concessional loans. Such support will make it possible to build 50 greenhouse complexes with a total area of ​​650 hectares, which will increase the annual vegetable production by 500 thousand MT.

The Minister of Agriculture pointed out that the state support for vegetable growers also includes compensating investors for 20% of the costs incurred.

“Over the past 3 years, we have given support to 56 investment projects with a total of more than 400 hectares of greenhouses. All this should facilitate the task of replacing imported greenhouse vegetables with Russian product within the next 3-4 years,” said A. Tkachev.

Every year, the greenhouse complex in the Moscow region which the minister visited grows 27 thousand MT of tomatoes, 15 thousand MT of cucumbers and 1 thousand MT of sweet peppers. The cutting-edge technologies used in the complex allow it to compete successfully with imports, supplying fresh and quality products to Russian stores.

www.freshplaza.com

Russia Expects Fruit Production to Grow by Nearly 14% in 2018

Written by

In 2018, Russia expects to harvest about 14 percent more soft fruits and fruit from trees than in the previous year, according to the forecasts published by the Ministry of Agriculture of the Russian Federation, reports Fruit-inform.

Russia believes that this growth is possible thanks to the orchards planted three to five years ago; however, according to experts, it will not be easy to obtain greater volumes, as some of the fruit plantations that have existed for 25-30 years are gradually starting to yield less fruit.

This year, growers expect to harvest 3.3 million tonnes of fruit and berries in Russia, which is 13.8% more than a year ago; however, it should be noted that this still depends on the weather conditions. Last year, the production volume could have been higher, but it was prevented by frost during the flowering stage.

Russia’s self-sufficiency in fruit production in 2017 was only 36%, according to data from the Ministry of Agriculture, and this despite the fact that the state has already compensated agricultural producers for a part of the funds for the creation of new orchards from 2010.

Thanks to state support measures, an average of 10.5 thousand hectares of orchards devoted to berry cultivation have been planted in Russia each year. In 2017, this figure stood at 15.2 thousand hectares. This year, there are plans to set up approximately 11.3 thousand hectares more.

www.freshplaza.com

Russia Became World’s Second Largest Banana Importer Last Year

Written by

In 2017, fresh fruit and vegetable imports into Russia grew by 17% compared to the previous year and amounted to 7.1 million MT. Of this volume, 22% corresponded to bananas, 20% to citrus fruits, 10% to apples and 7% to tomatoes. Last year, Russia became the world’s second-largest banana importer (1.5 million MT), losing first place to the US and overtaking Germany. Also, there was a significant increase in the supply of mandarins, watermelons, celery and avocados.

The agency’s experts associate the growth of imports with the lifting of restrictions on the import of Turkish products, a record import of Ecuadorian bananas, and the establishment of relations with China, Egypt, Azerbaijan and Moldova.

The largest supplier of fresh fruits and vegetables last year was Ecuador, which accounted for 21% of the total volume of Russian imports in this category. Almost all imports from this country consisted of bananas, which, according to the FCS, stood at 1.4 million MT; 11% more than a year earlier. The second largest supplier was Turkey, which accounts for 14% of all Russian fresh fruit and vegetable imports. In fact, Russia absorbs one third of Turkey’s total fruit and vegetable exports. According to the Federal Customs Service, Turkey’s most important export product in 2017 was citrus fruits, with almost 600 thousand MT shipped, mainly in the fourth quarter of 2017. The Russian market also purchased Turkish grapes, peaches, nectarines and apricots.

In third place was China, whose share is 10%. The most important Chinese products were tomatoes, with sales volumes increasing by 26%, to 109 thousand MT, as well as apples (with a 13% drop, down to 100 thousand tonnes). China also supplied onions, mandarins, cabbage, grapefruit, bell peppers, carrots and pears. As noted earlier by the press service of the FCS, the physical volume vegetable imports from China increased by an average of 1.4 times.

Imports from Belarus, which ranked fourth, dropped to 540 thousand MT, compared to 630 thousand MT in 2016 and 1.1 million MT in 2015. The main Belorussian products exported were peaches and nectarines (88,000 MT), tomatoes (70,000 MT), pears (77,000 MT), potatoes (51,000 MT) and apples (47,000 MT).

www.freshplaza.com

EU Prolongs Sanctions against Russia until 15 September 2018

Written by

On 12 March 2018, the Council prolonged the restrictive measures over actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine for a further six months, until 15 September 2018. The measures consist of asset freezes and travel restrictions. They continue to apply to 150 persons and 38 entities.

An assessment of the situation did not justify a change in the sanctions regime. The relevant information and statement of reasons for the listing of these persons and entities were updated as necessary.

The legal acts will available in the EU Official Journal of 13 March 2018.

Other EU measures in place in response to the Ukraine crisis include:

  • economic sanctions targeting specific sectors of the Russian economy, currently in place until 31 July 2018;
  • restrictive measures in response to the illegal annexation of Crimea and Sevastopol, limited to the territory of Crimea and Sevastopol, currently in place until 23 June 2018.

www.consilium.europa.eu