After the EU extended the sanctions, press agency Reuters reports that the boycott is also extended by six months. A proposal for the extension is reportedly on president Putin's table. A new list with products is also said to be in the making, which includes stricter rules regarding the boycott. It's not yet clear what products these are exactly, but fruit and veg doesn't appear to be in the danger zone of stricter rules. Greek president Tsipras visited Moscow, and talked, among other things, about the possibility of resuming export, despite the boycott. In Europe, Copa Cogeca is lobbying with the Union to extend the compensation scheme as well, with the European Commission saying the sector has had time enough to adjust to the new situation.
Russia extends boycott by 6 months
Late last week, the EU reached an agreement on extension of the sanctions against Russia, during a summit at the beginning of the week European ministers also agreed to an extension. The sanctions will remain in force for another six months. A response from Russia was inevitable. Press agency Reuters reports that there are plans in Russia to extend the boycott by the same six-month term. A proposal on extension is said to be on the president's table. Russia had previously indicated that the decision was largely dependent on the European position regarding the sanctions. Prime Minister Medvedev reported having sent a proposal for extension of the boycott to the president.
According to Alexander Tkachev, of the Russian Ministry of Agriculture, an extension of the boycott is supported by the Russian agricultural sector. "Slowly, month after month, we're replacing foreign products with domestic products," Alexander says.
The boycott is a part of the geopolitical tensions, deputy prime minister Arkady Dvorkovich said at the International Economic Forum. According to him, the support Russia gives to the agricultural sector is nothing compared to the support given by the US, Canada and Europe to agriculture. "If we could afford such support, the results of the agricultural sector would be more impressive," Arkady said.
New boycott list in the making
Everything points to Russia keeping up the boycott for a while longer. Previously there were reports of the boycott list being revised, those reports have now been confirmed. A source within the Ministry of Agriculture confirmed the reports to TASS. The document is also said to contain stricter requirements for export, although it's not yet clear to which products the stricter demands will apply. According to TASS, it's likely that there will be stricter measures for lactose-free milk, with tinned fish, chocolate and flowers also being on the list. Fruit and veg appears to dodge the bullet for now.
Greece going for fruit and veg export to Russia
In the wake of the Greek prime minister, Tsipras, a number of experts travelled to Moscow as well. The Russian president agreed to talk to these people about a solution for the boycott. Included on the agenda was a way to allow Greek export under the boycott, and the construction required for that. According to Russia, Tsipras didn't ask for financial support during his visit. Earlier this year, Tsipras also visited Moscow, with the same issue on the table. The Southern European country still has a financial problem, for which a final solution is currently being calculated by the EU.
Sector wants extension compensation
Now that it's becoming ever clearer that the boycott will be extended, the fruit and veg sector proposes an extension of the EU compensation scheme. The measures will end Wednesday next week. Copa-Cogeca is holding a meeting on extension with the European agriculture umbrella organization. The European Commission, however, believes that the sector has had enough time to get adjusted to the new situation.
The Spanish trade organizations also want an extension of the compensation scheme. The Cooperative Agro-Alimentarias points out that the sector is not responsible for the crisis. The organization asks to keep up the compensations for the sectors involved. The Young Farmers Association (ASAJA) calls on the EU and the Spanish government to provide more help with the search for new markets. Trade organization COAG agrees with this, and agricultural organization UPA fears the boycott will put prices under pressure. Although the prices are still good because smaller volumes are available, the organization thinks that the boycott could be an argument for buyers to lower prices.
Armenia exporting more
Since the start of this year, Armenia has already exported 24,600 tonnes of fruit and vegetables, 1000 tonnes more than last year. According to the minister of Agriculture, a good harvest is expected this year, and the export will also increase significantly. The minister announced that the apricot export, for instance, is at 600 tonnes already this year. Last year, 40 tonnes were exported. For cherries, tomatoes and cucumbers, larger export volumes are expected as well. The Russian market is said to be particularly attractive for the Armenian exporters. Recently the two countries reached a trade agreement, which can stimulate the export of fruit and vegetables.
Bulgarian cherry growers suffer losses due to boycott
The Bulgarian deputy minister of Agriculture and Food, Georgi Kostov, told journalists that it's difficult to calculate the exact losses due to the Russian boycott, because the direct export is small. The cherry season, the minister says, is looking good: weather conditions are good, and the volume is expected to be higher than last year. The number of export contracts is still low, however. The Bulgarian minister also said that the boycott is a problem for Bulgaria and the EU.
