Moldova

Russia to Extend Preferential Trade Regime with Moldova, Says Dodon

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 Starting from July 1, Moldovan exports of fruits, vegetables, preserved food and wine products to Russia will be exempt from customs duties, according to the republic’s President Igor Dodon. Russian authorities have agreed to extend duty-free treatment for Moldovan exporters, as well as to provide additional privileges for transport companies, the republic’s President Igor Dodon said following a meeting with Deputy Chief of Staff of the Russian President’s Executive Office, Special Presidential Representative for the Development of Trade and Economic Relations with Moldova Dmitry Kozak in Moscow on Thursday.

“Russia agreed to extend preferences on duty-free supplies of Moldovan goods, which means that starting July 1 of this year Moldovan fruits, vegetables, preserved food and wine products will be supplied to the Russian market free of customs duties, which will enable Moldovan producers to save at least 20-25 mln euro per year,” Dodon wrote on his Facebook page.

Russia will also consider the possibility of providing assistance in the form of diesel fuel to agriculture producers affected by the drought this year, he added.

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More Moldovan Fruit and Veg Exporters Will be Allowed to Ship to Russia in 2020

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In 2020, the number of fruit and vegetable companies allowed to export to the Russian market will increase from 130 to 350. Also, more goods will be exported to the Russian market without customs duties.

These are the results of the visit to Moscow of Agriculture Minister Ion Perju, who is also the co-chair of the Moldovan-Russian Intergovernmental Commission for Trade-Economic Cooperation.

These results were not reported by the Ministry of Agriculture, but by the head of state, Igor Dodon.

“Ion Perju informed me of the results of his recent visit to Moscow, during which he held a meeting with his Russian counterpart, the co-chairman of the Moldovan-Russian Commission, Dmitry Patrusev,” said Igor Dodon on his Facebook page.

Another result of the visit is the increase in the number of transport authorizations that Russia will grant to carriers from the Republic of Moldova, which is being set at 16,000.

Ion Perju informed the head of state that he asked the officials of the Russian Federal Service for Veterinary and Phytosanitary Surveillance to inspect an additional 33 wineries and four canning companies in order to grant them access to the Russian market.

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Agreement for Duty-Free Supply of Moldovan Fruits to Russia Extended to 2020

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The Prime Minister of the Republic of Moldova, Ion Kiku, announced the extension in 2020 of the duty-free regime for the export of five categories of agro-food products, including fruits and berries, from Moldova to Russia, which has been in force since the beginning of this year. The corresponding agreement was reached during a recent visit of the head of the Moldovan Cabinet of Ministers to Russia and negotiations with a Russian counterpart.

Also, the parties agreed on the expansion of the list of Moldovan agricultural producers and traders authorized to supply fruit and berry products to Russia. At the moment, only Moldovan enterprises that are included in a special list of suppliers authorized by the Rosselkhoznadzor are entitled to export agricultural products to the Russian market. Currently, this list includes a little over 150 enterprises, while no more than a third of them are active exporters of fruits and vegetables.

In the summer of this year, in response to a request from the Rosselkhoznadzor, the leadership of the National Food Safety Agency (ANSA) prepared and sent to the Russian office an additional list of potential fruit exporters that included 58 enterprises with plantations, cooling facilities, and sorting and packaging lines. To date, the list has not yet been approved by the Russian side.

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Russia Extended the Benefits on the Import of Vegetables and Fruit from Moldova

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The Russian government extended the preferential regime for the supply of fruits and vegetables from Moldova until the end of 2019. The corresponding resolution is published in on the website of the Russian government.

The zero rate for customs duty will apply to the following goods: vegetables and some edible roots and tubers; fresh apples, pears, quince, apricots, cherries, peaches (including nectarines), plums and thorns; vegetables cooked or canned, without the addition of vinegar or acetic acid, unfrozen, except for the products of HS code 2006; grape natural wines, including fortified, grape must, except as specified in HS code 2009.

There are instructions for the Ministry of Economical Developmet, the Ministry of External Affairs and the Ministry of Agriculture of the Russian Federation to make, if necessary, until 20 September the proposal to change the term of application of the zero rate. Monthly monitoring of import of products will be carried out by the Federal customs service.

It is noted that due to the preferential regime, the volume of deliveries to Russia for four commodity groups in January – May 2019 increased significantly compared to the same period in 2018. The import of vegetables increased from 360 MT to almost 2,370 MT, or 6.6 times more. The import of apples increased from 100,000 MT to almost 167,000 MT, or by 67%. The import of canned products grew from 1,275 MT to almost 1,940 MT during the reported period.

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First Moldovan Apples into Russia under Duty-Free Agreement

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Moldova delivered to Russia the first batch of apples under the Duty Free Trade Agreement, which was the result of negotiations between Russian President Vladimir Putin and Moldova Igor Dodon.

The removal of duties will allow Moldavian apple exporters to save $600 per truck and increase the competitiveness of fruits on the Russian market.

Presidential Adviser on the agro-industrial sector, Ion Perju, recalled that since January 1, there is a ban on transit and import of a number of commodity items from Ukraine into Russia. Products must be imported into Russia bypassing Ukraine, but the administration of Igor Dodon is already negotiating with Russian representatives.

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Russia Abolishes Import Duties on Fruit and Vegetable Imports from Moldova

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The Russian government has passed a decree on the abolition of duties on imports of Moldovan fruit and wine products in 2019, said the President of the Republic, Igor Dodon.

We are talking about vegetables, fruits (apples, cherries, plums, nectarines), canned food, grapes, wines and brandies.

The removal of duties has been possible thanks to the agreements reached earlier with the President of the Russian Federation, Vladimir Putin.

This resolution, according to Dodon, will undoubtedly contribute to a significant increase in the export of Moldovan goods to the Russian market, the creation of jobs, and an increase in revenues.

“I express my gratitude to Vladimir Vladimirovich for the support given to the Moldovan people,” said the Moldovan President on his Facebook page.

The removal of duties is especially important for Moldovan producers of apples and grapes. In 2018, due to an excessive harvest, they had to deal with a shortage of markets.

Earlier it had been reported that the Russian Federation was going to abolish customs duties on Moldovan apples, grapes, vegetables, canned goods and wines until July 1, 2019.

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Sharp Drop of Moldovan Apple, Plum and Table Grape Exports to Russia

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According to analysts from EastFruit, despite the record harvest of apples and plums, Moldova has sharply reduced its exports to Russia in September 2018 compared to the same month last year. Apple exports from Moldova to Russia fell by 42%, from 27.2 to 15.8 thousand MT. However, this volume still exceeded that of September 2016, when exports amounted to just 13.4 thousand MT.

As of the third week of November, Moldova still has record stocks of plums in cold storage. In September, its exports to Russia amounted to 9.3 thousand MT and were 6% lower than in the same month a year earlier.

Meanwhile, the export of table grapes dropped even more significantly, by 23.4%, down to 3 thousand MT. In the same month a year earlier, 3.9 thousand MT of table grapes were delivered from Moldova to Russia. Also, the supply of Moldovan peaches and nectarines to Russia dropped almost five times, from 527 MT to 113 MT.

It is also worth noting that the export of Moldovan pears to Russia recorded a slight increase, although the total volume remained insignificant. In September 2018, 177 MT of pears were exported.

All in all, in September, Moldova became the Russian Federation’s eighth largest fruit supplier, receiving $ 14.5 million in revenue; 23.5% less than in September 2017. Moldova’s share in Russian fruit imports fell from 6.3% in September 2017 to 5% in September 2018. A year earlier, Moldova stood fourth in this ranking, but in 2018, the country has been overcome by China, Azerbaijan, Uzbekistan and Argentina.

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Moldovan agricultural exports to Russia on the rise

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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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Apples from Moldova may do harm to apple growers from Krasnodar region

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Growers from Krasnodar region, South Russia, estimate the loss of 2 billion rubles due to competition with Moldovan apple suppliers until the end of the year. In the end of July, Moldovan suppliers began importing apples and plums to Russia and they are cheaper than Russian ones. Domestic producers turned for help to the Russian Ministry of Agriculture. However, experts believe that the request to ban the import is unlikely to be satisfied.

22 July, Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) allowed 43 Moldovan companies to export their produce to the Russian market, and the produce is cheaper than the Russian one. As a result, domestic production remains unclaimed. So, the price of a Russian plum fell from 12-14 rubles per 1 kg to 5-7 rubles per 1 kg.

According to the Union officials, over the past two weeks growers only from Krasnodar region lost more than 120 million rubles. And the total losses of fruit growers from Krasnodar region are estimated to be more than 2 billion rubles till the end of the year.

At the same time, growers from Krasnodar region believe that so far they have successfully contributed to import substitution program. For example, according to their data, they have increased domestic production of seedlings of fruit crops by 2.7 times, and fruit production has increased by 45.2% over the past five years.

Rosselkhoznadzor said that it would be impossible to ban the import of Moldovan plums and apples now without any risks of biological kind. In the summer of 2014, Rosselkhoznadzor banned imports of vegetables and fruits from Moldova because they did not match Russian phytosanitary requirements. In mid-2015, the import was renewed on a trial basis, and the number of companies authorized to ship products to the Russian market, is gradually increased. In March 2016, Rosselkhoznadzor temporarily suspended imports of vegetables and fruits with the Moldovan phytosanitary certificates via Belarus to the Russian market because of the suspicion of re-exports of apples and pears from the European Union.

In 2015, Moldova exported to Russia 42,000 MT of apples, according to the Federal Customs Service. The total import of apples to Russia was 890,000 MT. Domestic production was about 600 000 MT in 2015. As for plums, Moldova takes the second place – 13,000 MT, the total import of plums to Russia was 60,000 tons, while Russia produced only 6,000 -7,000 MT.

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Russia banning Moldovan fruit and veg imports through Belarus

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From 14 March, Russia will be prohibiting the importation of plant products from Moldova through Belarus, as reported by the Rosselkhoznadzor. The decision has been adopted after inspections revealed that Moldovan companies were allegedly supplying Russia with “unregulated products”.

The Rosselkhoznadzor recalled that, following the decision to allow the supply of plant products last year, there was a “sharp increase in the traffic” of products from Moldova to Russia “with complex logistical routes” through Belarus; the Office suspects that these may actually be re-exports from countries that are currently affected by the embargo.

Now Moldovan fruits and vegetables can only be imported through the border points located in Belgorod, Kursk and Bryansk, i.e., on the border with Ukraine.

It is worth recalling that, on 21 July 2014, the Rosselkhoznadzor banned Moldovan fruit exports to Russia. Officially, the decision was taken because of irregularities in the products’ condition and the presence of the Eastern moth, although it happened after Moldova signed the EU Association Agreement for the establishment of a free trade zone.

After seven months, however, the agency allowed the import of Moldovan apples from a few selected companies.

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