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Russia extends ban on western imports

Russia extends ban on western imports

Russian President Vladimir Putin has extended the country’s embargo on food products from Western countries until the end of 2021. Putin stated that the ban is in place “to defend national interests” and prohibits most food products from nations penalising Moscow. The country has been particularly hit by EU sanctions following the Ukraine crisis and Russia’s 2014 annexation of Crimea.

Last week, the EU agreed to extend economic sanctions against Russia until January 2021, citing a lack of progress on a peace process to put a stop to the conflict in eastern Ukraine. While domestic producers have benefited from the sanctions, they have had a negative effect on Russia’s economy with elevated food prices and a decrease in the quality of some products. Europe’s fresh produce sector has also felt the impact of these sanctions as exports to Russia previously accounted for a large share of sales.

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The Russian embargo and Turkey’s fruit and vegetable exports

In 2014, 43% of all the volume of tomatoes exported from Turkey went to Russia (336,000 tons).

Since January 2015, Turkey had exported to Russia food valued at $1 billion, or 4% of all Russia’s food imports, according to Russian Customs statistics.

The leading export products were tomatoes (292,800 t) and citrus fruit. Russia also imported grapes (68,000 t), peaches (26,000 t), apricots (28,800 t) and other fruit.

During the fruit season, the share of some Turkish products (for example, citrus) reached 50%.

In 2014, 43% of all the volume of tomatoes exported from Turkey went to Russia (336,000 tons).

“We can substitute Turkish tomatoes with those from Iran, Morocco, Israel, Azerbaijan and Tajikistan,” said Aleksander Tkachev, Russian Minister of Agriculture.

As for Turkish citrus fruit (250,000 tons imported in 2014), they can be substituted by ones from the RSA, Morocco, China, Argentina, Israel, Abkhazia and Georgia, he said.

It is possible that the embargo for Turkish tomatoes, in particular, will lead to price rises; however it is unlikely that the prices will be higher than last winter. In January 2015, 1 kg of tomatoes cost about $3; if it costs more, the demand will slump.

The government has ordered the Ministries of Trade and Agriculture to track price trends; and the Ministry of Agriculture to see how it can support Russian producers.

At the same time, the embargo does not extend to some specific products, such as lemons, lettuce, figs, etc.

NB

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Fresh Food Russia Forum November 13-14 in Moscow

borrar russian stores

 

About 300 delegates from 50 federal and regional retail chains are attending the Fresh Food Russia Forum being held November 13-14 at Moscow’s Kosrton Hotel.
 

Dedicated to fresh grocery and in-store produce, the event also includes opportunities to join a special negotiations session with commercial directors, purchasing directors and buyers from retail chains from Kaliningrad to Khabarovsk.
 

According to the Fresh Food Russia Forum organisers, the recent US and EU food import ban by Russia means the country’s retail chains are in search of new suppliers. “They are looking for reliable international partners.”
 

“Russia was the leading retail market by turnover in Europe in 2013. Two thirds of Russian customers are willing to pay more for fresh grocery, according to recent surveys by consulting firms,” they said.

 

More information and registration:

Kseniya Kamenskaya, +7 (495) 785-22-06, 781-11-34

Official forum web site:

http://www.b2bcg.ru/events/fresh-food-russia-2014