Pakistani Exports to Russia Increase by 10%

Pakistan’s exports to Russia increased by 10 percent in June, 2017 as compared to May 2017, which showed positive sign for enhancing the trade ties between the two countries.

Pakistan and Russia have agreed to sign Free Trade Agreement for increasing bilateral trade and improving long term economic ties, said senior official of Ministry of commerce here on Thursday.

“Russian President Vladimir Putin during his meeting with then Prime Minister Nawaz Sharif on the sidelines of Shanghai Cooperation Organization (SCO) offered the agreement, which Pakistan accepted,” he added.

He said the trade turnover between Russia and Pakistan has slightly increased and both of the countries have huge potential for economic cooperation in future, he said.

He said that Pakistan is exploring Russian markets to boost exports of food products to take advantage of the vacuum created after Moscow banned food imports from European countries.

The official said that Pakistani citrus, rice, potatoes and mangoes are making their way into the Russian market.

He said Pakistan had huge opportunity to export fresh meat and poultry, vegetables which include carrot, cabbage and beet-root, and fruits including dates, dry fruits, apple and plum in Russian market.

The government is committed to support Pakistani exporters for gaining facilities to increase excess and competitiveness in the Russian markets.

Both sides were also willing to sign Preferential Trade Agreement (PTA) before the FTA to get excess to Russian market for enhancing trade facilities to the exporters.

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Russia increased fruit and veg imports from Egypt

In the first half of this year, Russians imported about 362.5 thousand tonnes of fruit and vegetables from Egypt, compared to 310.5 thousand tonnes in the same period a year earlier. During 2015, the total volume purchased by Russia from Egypt reached 364.7 thousand tonnes, reports FAMMU/FAPA, based on data from Factsheet Russia.

The most imported products from Egypt between January and June this year were oranges, with 250.3 thousand tonnes, and onions, with 79.5 thousand tonnes. For comparison, in the corresponding first six months of the previous year, the volume of oranges purchased reached 201.5 thousand tonnes and that of onions stood at 91.4 thousand tonnes.

Besides these, Russians also imported almost 10 thousand tonnes of Egyptian mandarins, nearly 6 thousand tonnes of grapes and about 3.5 thousand tonnes of lemons, tomatoes and garlic.

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Moldovan agricultural exports to Russia on the rise

The trade turnover between Moldova and Russia in 2016 has increased thanks to a significant growth in the number of deliveries of Moldovan agricultural products to the Russian market.

This was stated by the Minister of Agriculture of Russia, Alexander Tkachev, during a working meeting with the Minister of Agriculture and Food Industry of Moldova, Eduard Grama, held in Moscow during the exhibition “Golden Autumn”, reports NOI.md.

Tkachev noted the positive dynamics of the trade turnover between the two countries, stressing that bilateral trade has increased by almost 21% compared to the same period last year, with the supply of traditional Moldovan agricultural products, namely apples, pears, quinces, apricots, plums and cherries, up by more than 27%.

During the meeting it was noted that the significant increase in the volume of Moldovan agricultural products since the beginning of 2016 has been mainly due to the active work of the supervisory agencies of the two countries.

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

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.

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Russian producers against Iranian fruit and veg imports

Russian fruit and vegetable producers have showed their opposition to the import of tomatoes, cucumbers, potatoes and carrots from Iran under a simplified customs procedure with reduced duties. In the first half of 2017, a free trade zone between Iran and the Eurasian Economic Union, which includes Russia, is expected to come into force.

Back in June, it was revealed that Russia may create a temporary free trade area (FTA) with Iran in the first half of 2017, lasting until 2020, leading to a reduction of customs duties for Iranian goods. A list has subsequently been prepared that features all products whose supply to Russia is a priority for Iran.

This list includes cucumbers and gherkins, tomatoes, potatoes, peppers and other vegetables; canned tomatoes, fresh garlic, onions, shallots, apples, trout, dry milk, meat, chicken and offal, oil palm substitutes for ocoa butter, white sugar, chewing gum and apple juice.

However, the Ministry of Agriculture, which has carried out a risk analysis on the impact of an increase in the import of certain categories of goods from Iran, has been asked by the National Union of fruit and vegetable producers to withdraw tomatoes, cucumbers, potatoes and carrots from the free trade regime.

The Association emphasizes that, in the framework of the state programme for the development of domestic agriculture, producers are facing many challenges, starting with the construction of about 1.3 thousand hectares of modern greenhouses up until 2020.

They recall that the programme was launched in 2013. According to the National Union of producers of fruits and vegetables, the construction of these greenhouses started in an area of 100 hectares at a cost of 20 billion roubles.

The viability of these modern greenhouse complexes will rely on the seasonal prices for the products in autumn and spring. In the summer, producers have been operating at a loss and selling their products below cost, and “shipments of imported products grown in milder climates have a direct impact on prices,” stated the producers.

According to the Association, the production of potatoes and carrots is currently actively developing in Russia. For example, potato production in 2015 amounted to 7.6 million tonnes and increased by 22% compared to 2014; meanwhile, the carrot production amounted to 713 thousand tonnes in 2015, 25% up compared to 2014. “This increase is due to the introduction of modern technologies of cultivation and storage, which requires a considerable investment by agricultural producers,” said the Association of Producers in a letter.