Market News

Russia hopes to finish WTO talks by yearend

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Russia hopes to finish talks on gaining membership of the World Trade Organization (WTO) by the end of the year, Russian President Dmitry Medvedev said on Sunday.

Russia has been in membership talks with the 153-nation WTO for 17 years and remains the only major economy still outside the organization.

Medvedev is now accepting in Moscow Swiss President Micheline Calmy-Rey, who said: “I hope that today’s talks will be successful and…Russia will join the WTO till the end of the year.”

“We would also like it,” Medvedev added.

Source: en.rian.ru

Russia is close to joining the WTO after being offered a compromise by Georgia

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Georgia, like all WTO members, has an effective veto on Russia’s membership, and it is the last to agree. Its offer of a compromise deal was the climax of a long negotiation, overseen by Swiss mediators, about how to handle trade through two breakaway regions of Georgia that are loyal to Russia.

Russian negotiator Maxim Medvedkov said Russia would give its response by early next week.

For Russia, which has strong exports of oil and gas, the benefits of WTO membership may be slow to materialize, though the World Bank estimates it could increase Russian GDP by 3.3 percent in the medium term.

Advocates of membership say Russian consumers will benefit and Russia will have to become more efficient, making good on the government’s mantra of diversification by putting the oil-dominated, state-led economy on a diet of rule-based openness.

Source: www.reuters.com

Ukraine may double apple exports in the current season

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According to Fruit-Inform, in August and September 2011, the Russian Federation’s apple imports from Ukraine grew year-on-year.

As of October 2011, internal prices for apples are higher year-on-year in Ukraine. Such a fact is connected mainly with big producers not hurrying with sales of their produce. Practically all fresh apples harvested by them are stored. Moreover, Ukraine’s storage capacity significantly expanded in the past year. Farmers plan to start their main shipments in early December. Many of them expect to increase their exports to Russia 1.5-2 times year-on-year.

How the current season situation will favor Ukrainian producers’ plans? This and many other questions will be answered at the 8-th International Conference “Fruits & Vegetables of Ukraine – 2011. New Exporter”. The event will take place in conjunction with Fresh Produce Ukraine 2011 Fair which will be held at IEC, the most up-to-date exhibition center of Ukraine in Kiev, from November 30 to December 2, 2011.

The conference’s third day will be fully devoted to the Trade Forum involving key Russian and Ukrainian retail chains, importers and wholesalers that will enable the participants to receive the unique information about the Eastern European fruit and vegetable sector.

Source: www.freshplaza.com

Russia and EU agreed on WTO terms

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Russia and EU have solved all bilateral issues pertaining Russia’s entrance into WTO. There is only one obstacle left on the way to WTO – Georgia’s opposition. Georgia’s opposition is the final barrier, and Russia needs to solve this before a WTO summit on December 15.

Karel de Gucht, the EU trade commissioner, has called on Georgia to drop opposition. “There is now very little time left to reach a bilateral agreement between Georgia and Russia. I call on both parties to continue their efforts to find a solution in a spirit of compromise,” The Financial Times quoted de Gucht as saying last week.

In televised comments last week, Russian President Dmitry Medvedev said his country would “survive” if it didn’t get WTO membership.

Source: www.retail.ru, en.rian.ru

Russia to Raise Production of Grapes

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In 2011 the volume of grapes grown in Russia will rise to 350-360 thousand tones vs 324,000 tones in 2010.

These figures were reported by Leonid Popovich, the President of the Russian Union of winegrowers and winemaking, on the annual meeting in Abrau-Durso. Unfortunately the vineyards lost due to severe frost 5 years ago haven’t been restored yet. In 2010 there were 60.9 thousand hectares of vineyards in contrast to 61.3 thousand hectares in 2006.

Source: www.fruitnews.ru

Walmart plans its Russian return

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When Walmart left Russia empty-handed in December 2010 – 8 years after it first began exploring the market and 3 years after it had opened a Moscow office – it appeared that the world’s largest retailer had finally met an emerging market it could not crack.

Today the company has already laid the initial groundwork for its return, hiring one of the leading figures in Russian retail to help manage its emerging markets division.

Lev Khasis, former chief executive of X5 Retail Group, Russia’s biggest retailer by sales, has started as a senior vice-president at Walmart, where he will be focusing on the companies’ existing emerging market operations, in countries including Brazil, India and China.

Mr Khasis stressed in an interview that his appointment did not indicate Walmart would immediately rush back into Russia, but said the company would continue to look at the market carefully, waiting for the right time and the right acquisition.

Source: www.freshplaza.com

Moody’s: inflation in Russia may freeze retailers’ incomes

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As per Moody’s international rating agency, consumer price index growth in Russia and slow increase of the real income of the population may restrain sales growth of Russian retailers in the nearest future. Like it was during the recession of 2009 retailers with larger share of discounters in their retail chains will demonstrate more stable results than retailers operating in other formats.

Moody’s is also expecting the investment volumes of international companies in Russia to remain low due to the poor investment climate in the country. Despite the fact that such large retail companies as Auchan, Suomen Osuuskauppojen Keskuskunta and Metro AG are represented on the Russian market, others (like Carrefour SA) have left the country.

Source: www.retail.ru

X5 Retail Group is suffering from the unstable economy

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X5 Retail Group has suffered more than any other retailer from the customer attrition,which was registered in Q3 2011. Moreover the company is expecting further lowering of LFL sales in Q4 2011. X5 Retail Group has lowered the forecast of growth in revenues for 2011: instead of 40% the revenues are expected to grow by 35%. After the company had announced this news its capitalization dropped by 15%.

X5 Retail Group blames the Russians’ purchasing power which has decreased due to the unstable economic situation in Russia and in the world – a trend which is observed on the Russian food retail market.

Source: www.retailer.ru

Magnit has opened 712 stores in 2011

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“Magnit”, Russia’s largest retail chain in terms of the number of stores, announced the unaudited operating results for the first three quarters of 2011.

Provisional unaudited consolidated retail earnings (VAT excl.) since the beginnings of 2011 reached RUB 240.1 bn, which is 46% more than in the same period in 2010.

In the first 9 months of 2011 the retailer has opened 712 stores. The total number of chain stores has reached 4,767: 4.593 convenience stores, 76 hypermarkets and 98 drugstores.

Source: www.retail.ru

Russian import of peaches and nectarines has doubled during the last 5 years

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According to the report of MCX USA/USDA, dedicated to the world stone fruit market, Russian import of peaches and nectarines has doubled during the last 5 years.

During the season 2011/12 the world production of stone fruit will reach 18.1 million tons, that is 10% more than in the last season. Leaders of the production are China, EU, USA. The same countries consume and convert the biggest volumes.

Because of the increasing supplies from the EU to Russia, world export of peaches and nectarines will grow 4% and reach 587 thousand tons.

Source: www.fruitnews.ru