The Russian Ministry of Economic Affairs proposes the removal of a number of products from the embargo list, instead of looking for ways to give Greece and Hungary access to the Russian market again. By removing a number of products from the embargo list, trade with these countries can be resumed in a straightforward manner. This way, Russia can prevent the violation of WTO rules. In connection with this plan, peaches, strawberries, mandarins, nectarines and cherries are named as products that could be allowed.
Эмбарго
Russia State Duma introduces quota to cap foreign products on domestic store shelves
Deputies of the Moscow region initiated a project to introduce quotas on product imports in Russian stores. In the future, according to the deputies, the share of foreign goods at grocers is not exceed 50 percent. The law could affect all retailers.
Deputy of the regional Duma of the Moscow region Nikitai Chaplin, who is one of the authors of the amendments to the law on “trade”, also said that it was the repeated appeals from domestic producers, who said that they were being discriminated against by networks, that inspired the idea.
The countries of Belarus and Kazakhstan have also fallen under the category of “importing countries”.
“After the sanctions were implemented, trade networks are simply replacing some imported goods on their shelves with other (imported goods). For example, European and Brazilian goods. Russian producers are not winning as a result of the accepted government measures,” Chaplin said.
Andrey Karpov, executive director of The Retail Companies Association, said: “in Russia, there are not enough domestic producers that could ensure trade networks of the quality of their products as well as the security of supply, which often leaves much to be desired”.
The share of goods imported by premium-class supermarkets currently amounts to no less than 65 percent. For other trade outlets, the share of imported goods is about 50 percent.
New food retailer to open in Vologda region, 200 stores by 2018
The Governor of the Vologda Oblast, Oleg Kuvshinnikov, announced plans for a new food retail network to appear in the region. The retail network will boast the brand name Nastoyashiy Volgogradskiy Produkt.
The number of stores across the area is to reach as much as 200.
“In the regions of the Vologda Oblast, there are already 15 of these stores opened under the brand name Nastoyashiy Volgogradskiy Produkt. By 2018, we have agreed that there will be more than 200 stores and they will open in each municipality. This is indicative of the growing grocery patriotism of Vologda. People understand that this is a guaranteed quality, it’s the environment, it’s the lack of preservatives and dyes.
Kuvshinikov also added that 52 companies and producers received certification to supply these trade points.
“The products under the label Nastoyashiy Volgogradskiy Produkt are currently supplied to 14 different countries and to more than 30 regions in Russia. We went to almost every major federal retail chain. A federal network such as the PiR Food and large supermarket Utkonos, we entered into a direct agreement for supplies,” the governor said.
www.fruitnews.info
Serbia increased the shipments of the apples to the Russian market almost by 6 times
According to industry experts, Serbia has increased the shipments of the apples to the Russian market almost by 6 times since the beginning of the season.
According to the Russian Federal Statistics Service, in the first two months of the season 2014/15 Serbia shipped to Russia more than 8,000 tons of apple, while during July-August 2013, the shipment of apples from Serbia to Russia amounted to 1,400 tons.
According to the experts, Serbia managed to increase supplies to the Russian market mostly due to the Russian food ban as a substitute for apples from Poland and Moldova. The experts do not exclude that Serbia has a chance to become one of the main suppliers of apple on the Russian market provided that the ban will continue.
Russia will not allow the import of prepaid products
Russia will not revise its decision on the ban of the import of prepaid food products. PM Dmitry Medvedev said that in an interview to “Russia 24” on September 21.
Prime Minister called all the losses incurred in this case force majeure.
“That is a force majeure, which exists in any state. The question is closed, we are not going to revise it” – said Medvedev.
Argentina: Exports to Russia will amount to 2 billion dollars in 2015
The Minister of Industry, Debora Giorgi, will returns to Argentina after closing this week’s trade mission to Russia, which involved more than one hundred Argentine companies.
“We are pleased with the performance of Argentine companies in the World Food Moscow fair,” the official said in a conversation with Radio Del Plata on Wednesday. She also said that shipments from the poultry industry, the producers of fine fruits and of dairy products were already arriving to Russia.
The ban imposed by the government of Vladimir Putin on the food products of the countries that opposed Russia in the conflict in Ukraine created an opportunity for Latin American producers.
Argentina also achieved negotiated the remaining harvest of pears and apples to Russia, a product that might have been sold at a lower value to another destiny if it wasn’t exported to that country, the minister said.
According to industry estimates, the ban creates the opportunity of exporting products to Russia for $750 million dollars, apart from the other $900 million dollars of products not covered by the ban, such as wine, bread or adds oils.
“Shipments of poultry, apples, and other products have already started to arrive. Businesses with Russia are already in place, and we need to sign longer-term contracts,” said Giorgi. Additionally, Russia’s third biggest importer of high quality fruits and vegetables plans to open an office in Buenos Aires to stock up on berries, cherries and other products. “It will be open before the end of the year,” Giorgi stated.
In 2003, Argentine exported USD $200 million to Russia. This year’s exports will amount to 900 million. “We will double that amount next year because we export perishable goods and are out of stock, but we will have new crops next year. Thinking we will achieve exporting $1.8 or $2 billion dollars is conservative,” said the Minister.
Rouble reaches new low
The Western sanctions appear to be having more and more effects on the Russian economy. The value of the rouble reached a low point compared to the dollar on Monday. On Monday, the rouble reached a new low compared to the dollar: 38 to 1, which is 1.3% lower. The Russian government is planning to close more trade deals in roubles, in order to limit dependency on the dollar in global trade. Investors favour more stable currencies.
In addition, Central Asian countries seem to have reacted with a bit too much enthusiasm to the Russian boycott. Many countries announced to significantly increase export, but reality turns out to be more complicated. The countries are unable to increase export on such short notice. Besides, experts warn that the proclaimed boycott will remain in effect for a year; a relatively short period. The question also remains whether these countries are able to increase domestic production on short notice. Also, growing exports also put more pressure on the domestic market, which could cause prices to go up there. Within the Central Asian countries, criticism can also be heard. Expanding the agricultural sector requires time, and there’s doubt whether exporters will give up their relations for a year of export to Russia. And then there’s the low quality of produce, do Russians actually want that? Finally, some of these countries don’t produce enough to meet domestic demand, and are importing from countries like Pakistan and Afghanistan.
Israeli minister Shamir remains optimistic about the chances given to the country by the boycott. According to the minister, the country is able to supply techniques as well as products, to build up domestic cultivation.
Russia is on the lookout for new suppliers of the banned products, and Israel is looking for new markets. That Israel can profit from the boycott has been known for a while, but the statements from Israel minister Yair Shamir in Russian media are interesting. He called the boycott a big opportunity for Israel. The minister also expects trade between the countries to continue after the boycott, “it’s cheaper, more stable and there’s no political price tag attached.” Israel also won’t answer to any European requests to support the sanctions. “Remember that the EU imposed sanctions on us recently. They boycott us, and then want us not to help someone else? They can’t do that.” Israel has more to offer to the Russians than produce alone, by the way. The country is also willing to supply knowledge, and to help the Russians set up production lines in order to become self-sufficient
By 2015, Armenia is going to export about 100,000–200,000 tones of produce
A representative of the Union of Domestic Goods Manufacturers of Armenia, Vazgen Safaryan, announced that by the year 2015, Armenia plans to ship approximately 100,000 – 200,000 tones of agricultural products to Russia, adding that this year’s total volume of exports is reaching 64,000 – 65,000 tones.
To achieve this overall growth of domestic production and intensifying the country’s shipments, Armenia’s authorities intend to allocate additional investments in the greenhouse business, the creation of free economic zones in border villages, subsidize agricultural loans by the state, establish an agricultural equipment and tractor parks, and reduce the tax burden for manufacturers.
The monetary value of Armenian exports to the Russian market next year could reach $70 million – $80 million.
Viet Nam boosting seafood exports to Russia
According to General Customs, in the first seven months of 2014, Viet Nam seafood exports to Russia reached $36.2 million, up 5.4 per cent year on year. Viet Nam seafood exports to Russia are forecast to increase more sharply in the second half, thanks to Russia’s lifting suspension on seafood imports of seven Viet Nam companies and FTAs with the Customs Union, reports VASEP.
Seafood exports to Russia increased by 150 per cent in January and then Russia banned imports of pangasius from Viet Nam, exports to this market started to be down. In March, seafood exports to Russia decreased by 22-28 per cent compared to the same period last year.
It is noticed that in 2013, pangasius accounted for 44 per cent of total Vietnamese seafood exports to Russia while in the first six months of this year, this was only 11 per cent.
In June 2014, Ministry of Agriculture and Rural Development sent a delegation to Russia to solve technical problems, resuming pangasius exports to Russia, to promote cooperation in food safety control and disease control on animals as well as animal-derived products. The two countries agreed to review and update the information in exchange information on food safety, disease of aquaculture and terrestrial animals.
As a result, in early August, Russia lifted the suspension on seafood imported from Viet Nam for seven companies, of which five with pangasius products and two with frozen shrimp.
In 2013, total value of imports and exports between Viet Nam and Russia reached $2.76 billion, up 12.6 per cent year on year. Viet Nam exports were $1.9 billion, up 17.7 per cent. In particular, exported seafood products reached $105 million, up 4.5 per cent.
Accordingly, Viet Nam will be the first Southeast Asian nation to sign FTA with Customs Union. The Agreement would be signed in late 2014 and early 2015. This would bring great exporting opportunities to Russia for Vietnam enterprises.
The seventh negotiating session scheduled to take place in September 2014 in St Petersburg. This will be a chance for Viet Nam to push Russia to strengthen cooperation to ensure food safety for agricultural products, to increase the number of Viet Nam seafood exporters allowed to join this market, and to regulate microorganism limit in aquatic products.
Russian banned seafood imports from the United States, the EU, Norway, Canada and Australia within one year from date of 7 August 2014 because of political issues related to Ukraine.
Products from other countries would be considered as substitutes. Norway, with the salmon products, is by far the largest seafood supplier to Russia, accounted for 36-41 per cent of the market in the past five years. The United States, accounted for 2.5 per cent market share, offers mostly roes, cod and other frozen fish. Most EU imports to Russia are mackerel, sardines, salmon and other fish types.
This will be a good opportunity for Viet Nam and other countries to boost seafood exports to Russia. Viet Nam pangasius may have the opportunity to return to the Russian market, replacing the white fish products limited due to Russian ban on 7 August.
Prices for apples are growing for the first time in 4 years
The average price for apples in Russia is increasing for the first time in the last 4 seasons.
In 2010, the prices for apples in Russia became decreasing, especially in 2012 after the country became a member of the WTO. In the season 2010/11 the average wholesale price for apples in Russia was $1.43/kg. In the season 2012/13 the price decreased by 25%, and in 2013/14 it was $0.89/kg.
The main reason for the decline of prices was imported apples, duties on which Russia constantly reduced in accordance with WTO requirements. Half of the total imports accounted for Poland. Domestic production did not influence prices a lot, as the total market share of the local apples in Russia did not exceed 20%.
The reason of price growth is the Russia’s ban on apples from the EU and Moldova. Analysts say that the price growth will depend on the possibility of re-export of Moldovan and Polish apples to Russia through the countries, which are not subject to the ban.