According to the FAO, the main consequence of the closed Russian border is a restructuring of the global trade flows. According to an adviser to the Greek exporters, the door to Russia is really locked, and the country has to look for growth without this market. In Russia, critical voices are heard, saying the boycott doesn't yield the desired effect. For the more patriotic Russians, a new product has been launched: toilet paper with the text of the Western sanctions. Azerbaijan and the Philippines want to improve trade relations with Russia. And a Russian who introduced his own currency a few months ago, based on potatoes, has been convicted.
FAO: boycott caused shift trade flows
The Russian boycott of products from the West has caused a shift in trade flows, the FAO writes in its Agricultural Outlook 2015-2024. "The main outcome of the boycott is a restructuring of trade flows, with countries not affected by the boycott, particularly South America, having a larger share in Russian import," according to the report. The export flows from the US and Europe have been moved to more Asian markets, which used to import from South America.
Western sanctions on Russian toilet paper
Siberian businesspeople recently introduced toilet paper with the text of the Western sanctions on it. That way, patriotic Russians can express their displeasure about the imposed sanctions. The rolls aren't cheap, one package with two rolls costs around 990 roubles (16 Euro). But for that price, you do get the text of the sanctions in packaging with a Western leader on it.
Greek export has to grow without Russia
Now that Russia has extended the boycott by a year, Greek exporters have lost the hope of the Russian market opening up again. "We can safely say that Greece has been expelled from the Russian market," says George Polihronakis, adviser to the Greek exporters. He sees possibilities in other markets. In addition, the Greek say the EU should take measures to favour products from the Union.
"Insufficient results boycott for Russia"
Russian website Lenta.ru published a critical article on the boycott. The author says the boycott has yielded insufficient results. First of all there's the danger of inflation, secondly the Russian agricultural sector was insufficiently prepared, and couldn't supply enough produce at low prices in the short term. The inflation figures, which increased over the past months, can be reversed quickly by opening up the borders, he claims. "People spend less because less produce is available." For growers, there's another problem. Although the vegetable acreage has increased, insufficient cold storage is available to store the harvest. Fruit growers are less affected by that problem, because the market was largely dependent on import, so there is room on the market.
Azerbaijan invests in Russian agricultural centre
The Minister of Agriculture of Azerbaijan said in an interview that the country will invest in agricultural centres in Moscow and St. Petersburg. The country wants to improve the export of non-oil products.
Philippines on trade mission to Moscow
The Philippines want to increase the export to Russia. The country sees opportunities because of the sanctions. In September, a trade delegation is to travel to Moscow to further investigate the possibilities. The Asian archipelago would be able to export various products to Russia, including fruit and vegetables.
Court: potato money not allowed
The court in Moscow has convicted a Russian potato grower. The man introduced his own 'currency' a few months ago, under the name kolions. The kolions were used as money in the village. One kolion is equivalent to 10 kilos of potatoes.
