Market News

Russia’s 2017-2019 budget drafted based on assumptions that the sanctions will remain till 2019

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Russia’s 2017-2019 budget is being drafted based on a cautious outlook and the assumption that US and EU sanctions will remain intact, Prime Minister Dmitry Medvedev said at the government commission on budget projections Friday.

“As has been repeatedly discussed, we cautiously assess the economic situation in the world markets from a conservative viewpoint. In particular, over the fairly low trajectory of oil prices in the range of $40 per barrel of the Urals brand over the next three years, and the possible retention of sanctions until the end of the forecast period,” Medvedev said.

The Russian Federal Treasury, meanwhile, said earlier in the day that January-September 2016 budget deficit totaled 1.58 trillion rubles ($25.3 billion), double the deficit recorded in the same period last year.

The draft has to be completed on October 28.

www.sputniknews.com

Russian fish catch increased by 5.9% since the beginning of the year up to 3.765 million MT

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As of October 4, 2016, the total catch of the Russian fishery industry was 3,765,770 MT, which is 211,000 MT or 5.9% more than during the same period last year.

In the Russian Far East the production volume increased by 242,680 MT and reached 2,588,480 MT. Pollock catch increased by 61,700 MT up to 1,480,200 MT. Herring catch increased by 42,400 MT – up to 216,200 MT.

The total catch in the northern basin was 456,750 MT, which is 8,540 MT more than last year’s catch during the same period. Cod catch increased by 15,500 MT and reached 325,200 MT. Catches of haddock increased by 25,700 MT – up to 92,400 MT.

In the Azov-Black Sea basin the catch is 9 MT more – in total 74,300 MT. In the Baltic Sea the production grew by 9,340 MT and reached 55,630 MT. The total catch in the Caspian basin is 35,410 MT, which is 3,470 MT less than last year.

www.fish.gov.ru

Russia lifts boycott on Egypt

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The boycott of Egyptian fruit and vegetables, with the exception of potatoes, will be lifted since October 1, according to the Russian press agency Tass.

“The parties reached an agreement on the export of Egyptian fruit and vegetables,” said the Russian phytosanitary service. The Egyptian companies now meet the phytosanitary requirements that have been set by Russia. A Russian delegation will visit the country in order to evaluate the situation in October and November. During this final visit, the potato export will be evaluated. Exports have been boycotted by Russia since September 22.

www.freshplaza.com

Belarus sold Russia five times more apples than it officially harvested

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Russian customs officials have noted a particularly “miraculous” apple yield in Belarus, a country that managed to sell Russia five times more apples than it officially harvested.

Russian law enforcement agencies have blamed the discrepancy in 2015’s figures on forged documents used to smuggle sanctioned, European produce over the Russian-Belarusian border, the RIA Novosti agency reported.

“Goods that have been sanctioned by Russia often come to the border with fake documents declaring them as Belarusian goods,” said Russian Deputy Prosecutor General Vladimir Malinovsky.

“Some 573,000 tons of Belarusian apples and mushrooms were imported to Russia in 2015 — five times more than what was actually harvested there,” he said.

The Belarusian government announced last week that it had arrested a smuggling ring involved in bringing sanctioned goods over the Russian border.

www.themoscowtimes.com

Russia aims to import only citrus and exotics by 2020

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Russia aims to import only citrus and exotic fruits by 2020 and thus achieve self-sufficiency for the main food categories, according to a statement from the Deputy Minister of Agriculture, Yevgeny Gromyko.

“By 2020, Russia will reach almost 100% self-sufficiency in foodstuffs like milk, meat and vegetables; imports will be limited to products like citrus and exotic fruits, which we are unable to grow in our country,” said Mr Gromyko.

During a meeting of the heads of agriculture of the BRICS countries, Yevgeny Gromyko noted that BRICS countries have huge resources and that “the five countries are key suppliers of agricultural products on the world food market.”

In this regard, he highlighted their great potential for mutual cooperation, reporting that Russia is ready to make the maximum contribution to this project.”

Russia is currently self-sufficient in grain and most types of meat and has managed to significantly improve its vegetable production.

www.freshplaza.com

Russian companies are interested in fresh fruit and vegetables from Turkey

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The West Mediterranean Exporters Association (BAIB) reported that they had received their first order of fresh fruit and vegetables from Russia after attending the WorldFood Moscow Exhibition, organised between the 12th and 15th September.

In August, Russian President Vladimir Putin and Turkish President Recep Tayip Erdogan re-established normal relations between the two countries, putting an end to a year of hostility, although the ban on import of some fruits and vegetables to Russian from Turkey has not been lifted yet.

BAIB president, Mustafa Satıcı, stated that they had attended the WorldFood Exhibition to raise awareness of Turkish produce as the fresh fruit and vegetable sector recovers and sanctions on Turkish exports are lifted.

Satıcı added that Russian companies had shown an interest in a wide range of fruit and vegetables including tomatoes, peppers, courgettes, pomegranates, oranges and lettuce.

www.freshplaza.com

EU acts to limit scope of Russian ban

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The European Commission is to take action to stop Russia from blocking overland shipments of Spanish fruit bound for China.

The announcement comes in response to complaints raised by Murcian MEP Ramón Luis Valcárcel that Russia’s actions go well beyond its embargo on imports of agricultural products from the European Union.

The Commission said it would employ every means at its disposal to force Russia to comply with WTO rules on the free movement of goods, including taking legal action if necessary.

The Commission has asked the Russian authorities for clarification on the terms of the veto on several occasions since it came into effect in August 2014, but their response has been “very ambiguous”.

Moscow claims its interpretation of the scope of the embargo is based on various pieces of national legislation, including the Customs Code of the Eurasian Economic Union.

Russia’s obstructions have led the Commission to explore alternative routes to the Chinese market. It is currently in discussions with the Ukrainian government, which is developing a transport itinerary with other countries in the Southern Caucasus and Central Asian region.

www.fruitnet.com

Import temporary suspension of Egyptian fruit and vegetables to Russia starts on September 22

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Russia announced a temporary suspension of imports of fruit and vegetables from Egypt beginning on September 22.

Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) did not disclose a full list of products that would be banned, but is is said that the list included citrus, tomato and potato. The official reason for the ban is “systematic breach of international and phytosanitary requirements” in “massive supplies” of Egyptian fruit and vegetables shipped to Russia.

Russia is one of Egypt’s top export markets for fruit. It sold some $350 million in agricultural commodities last year to Russia, including 400,000 MT of oranges, or 30% of its total orange exports, the trade ministry statement said.

Russia’s decision to suspend imports of fruit and vegetables from Egypt is not a counter-measure against Cairo’s rejection of Russia’s wheat, Interfax news agency quoted Russian Deputy Prime Minister Arkady Dvorkovich as saying on Tuesday. Before that Egypt rejected 60,000 MT wheat shipment from Russia due to issues with ergot fungus.

The ban will have no impact on Russia’s inflation, Dvorkovich said, according to TASS and RIA news agencies.

www.reuters.com, www.reuters.com, www.fruitnet.com

EU renews Ukraine-related sanctions against Russia

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The European Union is extending for six months the sanctions targeting people and entities involved in what the EU considers Russia’s illegal annexation of Crimea from Ukraine. The extension, officially announced Thursday, consists of an asset freeze and a ban on EU travel, and affects 146 individuals and 37 entities.

The measures, originally introduced in 2014, were last extended in March, the EU said in a statement. The latest action endorsed by representatives from the 28 EU member states means the punitive measures can remain in force through March 15, 2017.

On September 1, the United States has added 37 individuals and entities to its sanctions blacklist aimed at Russia over its continuing support for separatists in eastern Ukraine and the 2014 annexation of the Crimean Peninsula. The United States blacklisted a number of Russian companies operating in Crimea, including construction firms Mostotrest and SGM-Most which have been helping to build a bridge from Russia to the peninsula. Six separatist representatives in eastern Ukraine and 11 officials in Crimea were also sanctioned.

www.foxnews.com, www.rferl.org

Azerbaijani companies to supply major Russian food retailer

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X5 Retail Group, Russia’s second largest food retailer, will receive produce directly from member companies of the Azerbaijan Fruit and Vegetables Producers and Exporters Association (AMTIIA ), the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) reported.

The decision was taken within the framework of AMTIIA’s meeting with representatives of X5 Retail Group. The sides discussed the direction of mutually beneficial cooperation and took a decision on the direct export of fruit and vegetables to the Russian market.

Headquartered in Moscow, X5 Retail Group operates such trade networks as Pyaterochka, Perekrestok, and Karusel.

The newly-established AMTIIA is responsible for boosting Azerbaijan’s export potential in the fruit and vegetable sector as well as increasing overall production levels.

Currently, some 14 Azerbaijani companies are allowed to export their agro-production to the Russian market.

The northern neighbor is still one of the main trade partners of Azerbaijan, which has long had a well-established place on the Russian market. The country currently ranks fifth in Russia’s foreign trade with the CIS countries (following Belarus, Kazakhstan, Ukraine and Uzbekistan).

The trade turnover between Azerbaijan and Russia amounted to $1.06 billion in January to July 2016, while some $212.9 million of the figure accounted for the export to this country.

www.freshplaza.com