Russian Food Ban

Drop in Russia’s fruit and veg imports

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In 2015, Russia imported a total of 6.782 million tonnes of vegetables and fruits, compared to 7.934 million tonnes a year earlier. For comparison, in 2012 imports reached almost 8.019 million tonnes.

Last year, before the introduction of the embargo on Turkish products, Turkey was the largest supplier of horticultural products to the Russian market. In 2015, Turkish exporters supplied a total of 1.282 million tonnes of fruit and vegetables. The second largest supplier was Ecuador, which exported mainly bananas, with a total of 1.209 million tonnes. The third-largest supplier of fruit and vegetables in this period was Belarus, with 1.093 million tonnes, followed by China, with over 671.0 thousand tonnes; Egypt, with 364.7 thousand tonnes; Morocco, with almost 296.0 thousand tonnes and Israel, with 242.8 thousand tonnes of fruit and vegetables.

In total, the embargoed EU countries exported an insignificant volume of less than 19.0 thousand tonnes, of which 100 percent was delivered from the Netherlands.

The ranking of most imported products is topped by bananas, with a total of 1.226 million tonnes. In second place, we have apples, with more than 880.0 thousand tonnes, followed by mandarins (768.7 thousand tonnes), tomatoes (665.5 thousand tonnes) and oranges (463.7 thousand tonnes).

The ranking continues with onions (less than 264.0 thousand tonnes), pears (257.6 thousand tonnes), grapes (253.3 thousand tonnes), lemons (200.0 thousand tonnes) and peaches (199.7 thousand tonnes).

www.freshplaza.com

Brexit unlikely to affect EU sanctions

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The political decision to extend the anti-Russian economic sanctions to 31 January 2017 has been already made, and the situation with the British referendum on leaving the EU cannot influence the decision. The EU Committee made the decision to extend economic sanctions against Russia for six months on June 21. This decision will come into force after the formal approval of the EU Council.

As it was reported earlier, the UK leaves the EU after a referendum held in Britain on Thursday. 51.9% voted for secession from the European Union.

Kremlin spokesman Dmitry Peskov said on Friday that the UK vote to leave the EU is unlikely to impact Europe’s decision to prolong sanctions on Russia. The sanctions are to be renewed before 31 July pending parliamentary approval in France, Sweden and the UK. “This [sanctions] process is discussed irrespective of Britain”, he told. He said Russia “is interested in the EU being economically strong, prosperous, stable and predictable. I would like to repeat what has already been said by President Putin: Brexit is a domestic issue of the United Kingdom and the issue of its relations with the E.U. The European Union is Russia’s very important trade and investment partner”.

At the same time, The Wall Street Journal notes that the British decision to leave the EU can destroy the unity of European countries on the issue of sanctions against Russia, as the UK supported Germany.

www.euobserver.com, www.uatoday.tv, www.ren.tv, www.riafan.ru

Russia and EU: how deal with sanctions

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The Russian president Putin and EU president Juncker met each other yesterday at the International Economic Forum in St. Petersburg. The sanctions weren’t mentioned during the meeting, the Kremlin announced once it was over. “There is a general understanding that despite disagreements we shouldn’t operate within a vacuum,” according to the Kremlin. Later this month the EU will decide on the extension of the sanctions against Russia.

Former French president Nicholas Sarkozy is joining those in favour of lifting the sanctions against Russia, making his speech at the Forum. “We don’t need a new Cold War. I can’t allow a political wall to be built between Russia and Europe after the fall of the Iron Curtain,” according to Sarkozy. This is why both parties have to take steps towards gradually lifting the sanctions.

At the same time, some calculations are made on how the Russian counter-sanction influence some European countries: the trade between Russian and Belgium was 28% lower in January this year than it was a year previously. According to Russian calculations, the turnover of the Belgian agricultural sector has decreased by 5% due to the boycott. The Belgian sector has partially been able to adapt to the new situation, the Russian ambassador in Belgium said to Russian media. Russia mainly imported pears, tomatoes, pork and dairy from Belgium. Apple prices are on average 25% lower, but the main loss is being taken by the pear grower. In 2013 pears were still 30% of the export to Russia.

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Putin: Russia has no grudge against EU, ready to improve ties

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President Vladimir Putin said on Friday Russia did not hold a grudge against the European Union and was ready to improve relations, but he offered little prospect that mutual sanctions would be eased soon.

Speaking on the day the EU said it would extend sanctions on Russia imposed over its annexation of Crimea in 2014, Putin played down their impact and painted a bullish picture of an economy recovering despite low oil prices.

But in a disappointment for investors, he provided little hope that either Russia or the EU were likely to soften their sanctions, and was vague about the steps Russia would take to improve its investment climate.

“We do not hold a grudge and are ready to meet our European partners halfway,” Putin told the annual St Petersburg International Economic Forum. “But it certainly cannot be a one-way game.”

Despite lingering tensions over Ukraine, there are tentative signs of a thaw in relations and European Commission President Jean-Claude Juncker met Putin at the St Petersburg forum.

They did not discuss the sanctions, however, Kremlin spokesman Dmitry Peskov said, according to the Tass news agency.

Replying to investors’ questions, Putin said Russia did not intend to soften its counter-sanctions, banning most European food imports, before the EU’s sanctions were lifted.

He blamed the United States for persuading European countries to continue sanctions against their own interests.

“They (Russian counter-sanctions) affect Europe, but they don’t affect the U.S. – they have nil effect,” Putin said. “But the U.S. says to its partners: ‘you need to put up with it’. Well, if they want to, let them put up with it.”

Putin said Russia was liberalising its investment climate, but offered few specifics, except to pledge that he would sack governors who failed to support business.

Russia had weathered economic difficulties successfully, he said, citing falling inflation and capital flight and the preservation of foreign exchange reserves.

“Russia has been able to solve the most acute problems and already in the near future we count on the renewal of (economic) growth,” he said.

www.reuters.com

Kremlin softens the food ban, making exception for products used for baby food production

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Prime Minister Dmitry Medvedev has signed a decree on Wednesday to shorten the list of Western food products banned in Russia. Poultry, beef and vegetables used in the production of baby food have been removed from the blacklist.

The import of these products to Russia will be allowed if it is proved they will be used in the production of baby food, according to the amendment.

Last week, after the G7 discussed extending sanctions against Russia, Medvedev ordered the embargo on Western food products to be prolonged till the end of 2017.

“Our agricultural companies have repeatedly asked to continue the embargo on products from countries that had imposed sanctions against Russia or later joined them. I ordered draft proposals on extending the countermeasures not for a year but until the end of 2017,” Medvedev said.

European leaders are meeting in July to vote on whether to extend sanctions against Russia, which were imposed in 2014. The sanctions targeted Russia’s financial, energy, and defense sectors, as well as some government officials, businessmen, and public figures.

www.rt.com

Iraq replaces Russia for Turkish citrus exports

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Turkey’s National Citrus Council’s (UTK) Financial General Assembly recently took place in Mersin. In 2015, Russia was Turkey’s biggest market for citrus exports, worth 90.52 million dollars, so far in 2016 Iraq has taken their place with exports to the country worth 84.54 million dollars. The president of the council, Kemal Kacmaz said that out of the target for 10 billion dollars of fruit and vegetable exports by 2023, citrus should occupy a 3.5 billion dollar share.

Kacmaz says that the production and export of citrus is an important sector for the country; between January-April 2016, out of the citrus produced in Turkey 527,507  tons were exported bringing in 272.89 million dollars of revenue.

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Uzbekistan’s fruit and veg exports to Russia up 10%

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Russia is still looking for alternative suppliers for fruits and vegetables and one of the countries it has set its eyes on is Uzbekistan.

As reported by Russian sources, the total import of fruit and vegetables from Uzbekistan to Russia since January has increased by 10 percent compared to the same period last year.

The biggest increase compared to the same period of 2015 was recorded in the case of citrus fruit, with Russian imports becoming over 50 times greater. There has also been a significant growth in the case of grapes. In total, since the beginning of the year, Russia has imported 13.4 thousand tonnes of this fruit from Uzbekistan, compared to 339 tonnes in the corresponding months of the previous year.

In the case of lemons, even though the import volume is not particularly large, so far this year Uzbekistan has sold Russia approximately 621 tonnes, compared to just 14 tonnes in the same period of 2015.

www.freshplaza.com

Italian region opposes sanctions

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The Italian region of Veneto opposes the sanctions and is in favour of recognising the new status of Crimea, a vote on Wednesday showed. Although the vote will not have any further impact, it does represent the position of an important region. “The Italian government must insist that the sanctions are lifted immediately and that economic ties are restored,” according to the initiator.

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New restrictions on the supply of Turkish fruit and vegetables will not cause prices increase in Russia

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According to Igor Artemyev, head of the Federal Antimonopoly Service, new restrictions on the supply of fruit and vegetables from Turkey will not cause prices increase in Russia.

“Everything that could affect food prices in Russia have already happened. Immediately after the introduction of sanctions and counter-sanctions prices rose by 200-300%, mostly due to the loss of supply channels. Now new channels are created. We import fruit and vegetables from Iran, Abkhazia, Armenia.  Two years ago we were in a vacuum, and now there is no vacuum”- said Igor Artemyev.

In the spring of 2016, Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) banned the import of some categories of plant products from Turkey for phytosanitary reasons. So, in March and April, the agency banned the import of Turkish pepper, eggplant and pomegranate. On May 16, they banned shipments of lettuce and iceberg lettuce from Turkey, on May 19 – squash and pumpkins.

Rosselkhoznadzor representatives said earlier that the list of prohibited goods could be expanded, including Chinese cabbage, lemons and grapefruits. But due to the readiness of Turkey to discuss the current situation, further restrictive measures have not yet accepted. On Wednesday, Sergei Dankvert, head of department, told reporters that as for now Rosselkhoznadzor has no plans to ban import of all fruits and vegetables from Turkey.

January 1, 2016, Russia imposed a ban on the import of a number of agricultural products from Turkey. The country can not export to Russia strawberries, oranges, tangerines, grapes, apples, pears, apricots, peaches, nectarines, plums, some vegetables.

www.fruit-inform.com

Russian retail is negotiating the supplies of fruits and vegetables from Uzbekistan

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The largest Russian retail chains are negotiating the supplies of fruits and vegetables from Uzbekistan. Magnit, Auchan, 6 sotok, Essen and others showed their interest in Uzbek fruits and vegetables.

After the visit of the President of Uzbekistan to Russia and negotiations with Vladimir Putin, a number of Russian companies sent the request for Uzbek fruit and vegetables.

According to the inner source, a long-terms agreements for 5 and 15 years are being negotiated.  Uzbek companies suggest one price for the year.

Long-term agreements will allow Uzbek companies to focus on the production of the necessary volumes of exports of agricultural products and form logistics. Distributional centers for logistics, storage, processing, export will be created in 11 regions of Uzbekistan. Fruit and vegetables will be supplied there from the fields, where they will be stored in refrigerators for further shipment to export or processed into finished products.

When the sanctions are over, Uzbek companies will have some advantages, for example, Turkish companies work separately, and Uzbek companies act as a united group, although a lot is to be done.

www.fruit-inform.com