The Russian economy appears to be heading for bankruptcy. Due to various factors, the country is quickly living off its capital reserves. Next month trials will start on a green corridor between India and Russia. Ukrainian apples were destroyed after Russian interception, and in Ukraine Turkish fresh produce is becoming cheaper. The Russian Minister of Agriculture recently spoke about the developments in the sector.
Is Russia heading for bankruptcy?
The Russian economy is being threatened on multiple fronts. An article in The Moscow Times describes that the country is likely to be without money. The economy is shrinking, oil profits are low and due to the sanctions Russia can barely access capital. Even China appears to be less likely to invest in Russia.
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Russia in direct cooperation with Tadzhiki trade
Approximately 200 Russian wholesalers are going to be in direct cooperation with companies in Tadzhikistan. Trade with the Central Asian country is positive. According to the companies, the products are well-suited for export.
Green corridor India-Russia
Next month trials for a green corridor between Russia and India will start. The aim is to simplify customs formalities between the countries on the route and to facilitate trade. Iran, Azerbaijan, Kazakhstan and Turkmenistan are also negotiating about a simplification of customs formalities.
Ukrainian apples destroyed
According to Russian authorities a batch of 22 tonne of apples from Ukraine has been destroyed near the city of Tula. The apples were discovered upon inspection of a lorry, which had crossed the border via Belarus. The information on enclosed documents did not match the information supplied to the inspectorate.
Turkish fresh produce cheaper in Ukraine
The Ukrainian union of retailers expects a decline of 20 to 50 per cent in the prices of Turkish products. Turkish traders have to find new markets due to the boycott. The Ukrainian sector is therefore allowing for a larger supply and, subsequently, lower prices. Because of that, the country can profit from the economic war between Russia and Turkey. Similar trends are already visible for products such as oranges and pomegranates.
Uzbekistan extends measure for export by lorry
In September last year, the Uzbek government decided that the export of fruit, potatoes, melons and grapes could only occur via rail or air. In January limited licences were issued for export via lorries. This measure has now been extended until 1 July.
Spain wants extension supportive measure
The Spanish Minister for Agriculture, Fisheries and Food urged for an increase in compensations for the sector to take products off the market, and to extend the pallet of supportive measures, during an EU Council of Agriculture Ministers. Spain is also concerned because no draft is ready, while the measures are still in place until June.
Russian agriculture
The Russian Minister of Agriculture, Tkachev, recently examined the developments in the agricultural sector since 2014. Russia wants to be self-supporting in its food need by 2020. Since the counter-sanctions with which Russia closed the border against, among other things, European fruits and vegetables, many investments have been made into the various agricultural sectors. In the field of fresh produce, however, developments have been small. Until January this year Turkey remained an important trade partner, and there is still much import from the Middle East.
National cultivation is developing slowly. In the coming ten years, ten times as many greenhouses would have to be built as in recent years in order to become 90 per cent self-sufficient. Due to the low rouble rate, national cultivation is becoming more appealing, and because more greenhouse builders are entering the market, import is no longer a requirement. The production of potatoes has risen sharply. Russia wants to export in the coming period in order to maintain prices for potato cultivators.
