Russian Food Ban

Russia imported 1.5 million tons produce less during first half of 2016

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Russian import of fresh fruits and vegetables decreased sharply during the first half of this year. During the first half of 2015, 20 per cent less was imported already, due to the import ban implemented in August 2014. This year it was another 16 per cent less. In total, due to the boycott of import from the EU and a number of other countries, one-third less fresh fruits and vegetables were imported during the first half of this year. This amounts to at least 1.5 million tons.

The boycott of Turkey was added this year. Poland and Turkey are most affected by the boycott. From January to June this year, 500,000 tons less fresh produce was imported in Russia from both countries compared with the first half of 2014. Compared with last year, losses for Turkey were even bigger. The import ban was not yet in effect for that country then, it was implemented 1 January of this year.

The Netherlands and Spain exported about 175,000 tons of fresh produce just before the boycott during the first half of 2014. Belgium was also an important supplier for Russia before the boycott.

It is striking that import from a number of countries not affected by the boycott also decreased sharply during the first half of 2016. Some examples are Israel (64,000 tons less than in Jan-Jun 2014), China (35,000 tons less), Morocco (34,000 tons less) and Argentina (27,000 tons less). It should be noted for Morocco that during the first half of this year a recovery was noticeable compared to the first half of last year.

After implementing the boycott a lot of fresh produce was imported by Russia via Belarus. This amounted to at least 1.1 million tons for all of 2015. The results of the boycott were less severe because of that. During the first half of 2016, the amount of import in Russia via Belarus sharply decreased. In total, 290,000 tons, compared to 600,000 tons in the first half of 2015, was imported by Russia from January to June this year. Mostly apples, pears and tomatoes were sent to Russia via Belarus during the first half of the year.

Egypt profited most from the boycott. During the first half of 2016, 360,000 tons of fresh produce were imported from Egypt. That is nearly 100,000 tons more than in 2014. The products imported most were oranges and onions. Serbia also profited from the boycott. Apples were imported either from or via Serbia, for the most part. The other countries profiting from the boycott are mostly former Soviet republics.

Interestingly, the import of the most important import product, bananas, reached record sizes during the first half of this year. From January to June, at least 745,000 tons of bananas were imported. These come almost exclusively from Ecuador. The second import product was apples during the first half of 2016. Import only amounted to 360,000 tons, compared with 860,000 tons during the first half of 2013, and 740,000 tons during the first half of 2014. During the first half of this year, 325,000 tons of tomatoes were imported, compared to 600,000 tons before the boycott was implemented. The import of pears decreased from 360,000 tons during the first half of 2014 to 150,000 tons during the same period this year. The decrease of oranges remained limited. Other products whose decrease remained limited, or which even increased, were grapefruit, sweet cherries, garlic, apricots and plums.

www.freshplaza.com

Turkish ban reduced quality of fruit and vegetables in Russia

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The quality of fruits and vegetables in Russian stores has allegedly deteriorated after the introduction of the product embargo on Turkey, according to a study of the investment bank Morgan Stanley, which has studied the impact of a possible lifting of the sanctions against Turkey.

“We visited some federal and regional chains to look at the quality of the fruit and vegetables on offer. While the stores we visited may not be a representative sample, our experience revealed a decline in the quality of fresh fruits and vegetables,” says the report.

The Morgan Stanley study draws attention to the fact that, after the imposition of the embargo on some Turkish fruit and vegetables, Russian retail chains have switched to imports of fruit and vegetables from countries of North Africa and the Middle East. This, according to investment bank analysts, led to a loss of quality and a rise in the price of these products.

Analysts say that the blame is unlikely of retailers. “Russia had to switch to suppliers of North Africa and the Middle East, such as Egypt, Morocco, Israel or Algeria, to replace products which are usually imported from Turkey (tomatoes, peppers, peaches, citrus, etc.). This suggests long delivery distances, which often leads to lower quality, and sometimes to, higher prices,” said Morgan Stanley.

“If Russia does not lift the ban on the import of fruits and vegetables from Turkey and continues importing them from North Africa and the Middle East, the quality may deteriorate further and prices could become even higher,” concluded the study.

Morgan Stanley also predicted that the lifting of the embargo on Turkish products would not strongly affect the level of inflation in Russia. Earlier, a similar forecast was made by the Economic Development Ministry.

Lastly, Morgan Stanley analysts noted that given the significant devaluation of the rouble, which has led to higher prices for imported goods, Russian consumers have started buying less fresh vegetables and fruits, especially imported. In the annual survey which Morgan Stanley conducted in February 2016, 30% of respondents admitted that they were less likely to make purchases in supermarkets; a third of respondents admitted they were more likely to buy the agricultural products in the markets, while more than 20% have started to grow their own vegetables and fruit and about 10% share products with friends and family.

www.freshplaza.com

7,500 tonnes of products destroyed by Russia since August last year

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Over the past year, Russian authorities have destroyed a total of 7,282 tonnes of vegetable products and 228 tonnes of animal products banned for import into the country.

According to the Russian Federal Service for Veterinary and Phytosanitary Surveillance, the plant products most frequently subjected to destruction are pears, apples, peaches, peppers, tomatoes, aubergines, nectarines, grapes, strawberries and oranges.

The Russian embargo, forbidding the supply of food from Western countries, namely the US, EU, Canada, Australia and Norway, has already been in force since 7 August 2014, but in 2015, the Russian government decided to deal with the issue in a more severe way. The destruction of products from Western countries affected by the ban started on 6 August 2015 by decree of President Vladimir Putin. The disposal of such products is permitted to be carried out “in any way possible.”

The Kremlin renewed the period in which illegally imported products can be destroyed to 31 December 2017.

www.freshplaza.com

Russian ban alarms Bosnia fruit producers

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Bosnian fruit and vegetable producers stand to lose millions of euros after Russia slapped a temporary ban on imports of such items from Bosnia, citing concerns about safety. Bosnian fruit and vegetable producers fear major losses after Russia introduced a temporary ban on such imports from Bosnia from August 4.

“If the blockade remains in force in the following months, this will do incredible damage to our producers,” Dragoja Dojcinovic, president of the association of fruit producers of Republika Srpska, Bosnia’s Serb-dominated entity, told BIRN. “This is a crucial period, as the farmers are starting the harvest,” Dojcinovic pointed out, noting that spring was already hard for producers in the entity and that “many [farmers] had already signed contracts with Russia on exporting their produce.”

From August 4, Rosselkhoznadzor, Russian  introduced temporary restrictions on the import of “high phytosanitary risk products” to Russia from Bosnia and Herzegovina. Importing products from Bosnia and Herzegovina to Russia via third countries is also not allowed. Goods shipped before August 4 may be allowed to be imported after “supervisory measures and laboratory investigations”.

Rosselkhoznadzor explained that the volume of quarantined products imported into Russia from Bosnia and Herzegovina had increased. However, Russia was not provided with information about the country’s quarantine system and phytosanitary control measures. Moreover, the management of Plant Protection at Bosnia and Herzegovina’s Ministry of Foreign Trade and Economic Relations refused to accept a Russian delegation to familiarise them with the system.

In July, Russian experts from the Center for the Development of Entrepreneurship in St Petersburg had warned that export certificates for the EU market are not valid for Russia, Bosnian business website Capital reported. Bosnia’s Ministry of Foreign Trade declined to comment to BIRN on the decision of the Russian authorities.

A long-term ban would be a major blow for the agricultural sector in Bosnia, which in the past two years started exporting massively to the Russian market, taking advantage of the sanctions introduced by the EU against Moscow in 2014 in connection with Ukraine. According to the Bosnian Chamber of Foreign trade, the value of exports to Russia of fruits and vegetables, especially apples, pears, grapes, cabbages and tomatoes, grew from 3 million euros in 2014 to 11.8 million euros in 2015. In the first six months of this year alone, the value of this trade reached 10 million euros.

“If the ban is not lifted, agricultural producers in Bosnia could lose up to 25 million euros, which would be a great loss,” Amila Sehic, an expert at the Bosnian Chamber of Commerce, told. Vladimir Blagojevic, spokesperson of the Chamber of Commerce of Republika Srpska, agreed. “Exports from the RS to Russia have grown constantly in past years,” Blagojevic stated, noting that fruits are one of the most important products that the entity sells to Russia. “If this ban remains in force, it will be a major loss for many here in the RS,” he said.

www.balkaninsight.com, www.freshplaza.com

Russian embargo caused Turkey to lose $209m in Q1

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Russia’s Economic Development Ministry said in its report for January – June 2016 that Turkey lost $209 mln in the Q1 of 2016 due to the food embargo introduced by Russia on certain imports to the country.

“Import of goods prohibited from January 1, 2016, to enter the Russian Federation from Turkey, in the Q1 of 2016 compared to the same period in 2015 decreased by $209.1 mln,” the document said.

The Russian government banned supplies of a number of food products from Turkey to Russia from January 1, 2016. Fruits (oranges, tangerines, grapes, apples, pears, apricots, peaches and nectarines, plums, wild strawberries and strawberries) and vegetables (tomatoes, cucumbers, cauliflower, broccoli, yellow onions) were banned. The restrictive measures were adopted after the Turkish air forces shut down the Russian Su-24 bomber over the territory of Syria.

As TASS reported earlier, Veterinary and Phytosanitary Services of Russia and Turkey are going to hold consultations on removing restrictions in trade of Turkish agricultural products.

However, earlier Agriculture Minister Alexander Tkachev told journalists that Russia is in no hurry to open its market for Turkey, because it is necessary to support domestic producers.

www.freshplaza.com

Russia and Turkey hold high-level talks

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High-level talks between officials from Russian and Turkey will be held for the first time since the jet crisis, with visits by Turkey’s Deputy Prime Minister Nurettin Canikli and Economy Minister Nihat Zeybekci to Moscow on Tuesday 26 July. The talks aim to increase cooperation in fields such as energy, food, agriculture, tourism, transportation and foreign trade.

The high-level meetings are expected to usher in the new period to come, helping to increase Turkey’s exports of agricultural goods as well as its revenues from tourism and the construction sector.

According to the schedule, the Russian media reported that Canikli and his Russian counterpart Arkady Dvorkovich will first hold inter-committee meetings followed by bilateral meetings.

On the other hand, according to the announcement made by the Ministry of Economic Development of the Russian Federation, Zeybekci and Russian Minister of Economic Development Alexey Ulyukaev will meet to discuss the economic relations between the two countries.

Furthermore, Russian media expects a bilateral meeting to be held between Zeybekci and Russian minister of energy, Alexander Novak.

Meanwhile, Russian Prime Minister Dimity Medvedev on Saturday signed a decree for the continuation of commercial and economic relations with Turkey. The decree for the continuation of mid-term commercial, economic, scientific and cultural collaboration with Turkey until 2019 came into effect, according to a statement the Russian government’s press office released on Saturday.

The statement also suggests that negotiations for the establishment of a common fund to finance investment projects in Russia and Turkey will resume.

Medvedev announced that Russia will lift economic sanctions on Turkey “on a gradual basis.”

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Belgium parliament to consider resolution on lifting EU sanctions against Russia

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Belgium’s parliament has registered for further consideration a resolution on lifting of the European Union’s sanctions against Russia, author of the draft resolution MP Aldo Carcaci told TASS on Sunday.

The member of the parliament said the draft resolution discussion may be organized after the parliamentary holidays.

The EU economic sanctions against Russia remain in force to January 31, 2017. This autumn, the EU Council will have a wide discussion on further relations between the European Union and Russia, including milder sanctions or lifting them.

www.tass.ru

Russia boycotts Afghanistan and Somalia

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Russian authorities have proclaimed a temporary boycott of cherries from Afghanistan and nectarines from Somalia. The Russians suspect that European products are being smuggled into the country hidden among these products. The import ban also applies to re-export from other countries. The Russian phytosanitary service wants to prevent smuggling with this measure. Some African countries are also boycotted because of alleged smuggling. According to Russian authorities countries are exporting products they did not export previously, and that is suspicious. Russia says it has already discovered 600 cases of falsified certificates accompanying African products.

An example Russian authorities like to use: 8,733 tonnes of fresh produce was imported from Benin this year, including 1,400 tonnes of peaches, 899 tonnes of nectarines and 310 tonnes of kiwi fruits. These products were imported via the EU. Upon inquiry from the Benin ambassador in Moscow, the country proved not to cultivate stone fruit and kiwi fruit all.

In recent weeks several batches were destroyed, including: 4.5 tonnes of Czech peaches, 1.2 tonnes of Turkish cherries, 2 tonnes of Polish apples, 1.6 tonnes of Czech nectarines, 7.7 tonnes of Ukrainian cherries, 19 tonnes of Polish cherries and 19.5 tonnes of Polish apples. Furthermore, a series of anonymous products were destroyed, including 1.5 tonnes of cherries, 1.1 tonnes of grapes and 1.8 tonnes of nectarines.

www.freshplaza.com

More Russian think that sanction affect their lives

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The number of Russians, who believe that Russian Food Ban imposed by the Russian authorities, affects their lives, increased by 14% (from 26% to 40%), according to the Fund of Public Opinion (FOM). The number of those who consider the impact of the Food Ban negative grew by 8%.

47% of Russians believe that anti-Russian sanctions imposed by the West on the country’s economy have an effect, a year ago that number was 40%. 58% of respondents believe that the sanctions against Russia directly affect their lives. The number of those who do not think that sanctions affect their lives fell from 51% to 38%.

65% of Russians do not doubt that the Russian Food Ban have an affect on the countries from which the export of products was prohibited –  the EU, the United States, Australia, Canada and Norway, last year the figure was 3% more. At the same time, 39% believe that the embargo is beneficial for Russia, and 31% believe that the ban harms the national economy. A year ago, 47% of respondents thought that the effect of these restrictions was positive, and only 23% of Russians considered it negative. The number of Russians, who believe that Food Ban imposed by the Russian authorities affects their lives, increased by 14% – from 26% to 40%.

However, 82% of respondents still consider the Food Ban as a right thing. According to the Russians, the main arguments in its favor are “a response to sanctions against Russia”, “need to support domestic producers”, “we can provide for ourselves”, “domestic products better for health than imported ones”.

61% of respondents think that sanctions against Russia are the trade restrictions and a ban on entry into some countries for some individuals.

At the same time, a year ago 23% of Russians believed that the sanction would be lifted soon, now, only a tenth of the population thinks so.

www.retailer.ru

Russia prolongs Western food embargo until end of 2017

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Russian President Vladimir Putin has signed a decree that prolongs economic sanctions on some Western products from August of this year until the end of 2017.

A ban on importing certain agricultural produce, foods and raw materials from countries that have sanctioned Russia was first introduced in the summer of 2014. Moscow extended its counter measures in response to anti-Russia sanctions in June last year.

The latest decree, aimed at “protecting Russia’s national interests,” followed suggestions put forward by Prime Minister Dmitry Medvedev in late May. Medvedev tasked the government with preparing a package of measures that would potentially be in force until late 2017. The draft package was then introduced to the president.

Putin’s decree says that the government may offer proposals to change the ban’s terms “when necessary.”

www.rt.com