Russia's borders are not waterproof. With some regularity, the authorities intercept boycotted fruit, as in Moscow, where the products were already on the market. Worldwide countries see their opportunity and knock on Russia looking for trade deals. Armenia pursues to fully take advantage of the situation, but also Kenya, Iran, Lebanon and Israel are negotiating. Ukraine announced new sanctions against the Russians, and various figures have been released on the extent of the damage to the EU. Flemish growers have also harvested more than the minister expected.
Ukraine announces additional sanctions
The Government of Ukraine announced new sanctions against Russia. The penalties will be introduced in October under the programme "Restoring Ukraine. The plan was presented earlier this week. Companies and individuals that "supported the Russian aggression on Ukraine will be affected." The list includes 65 companies and nearly 200 people. "Among others, the 172 people who contributed to the annexation of Crimea and 65 entities that financially support the separatists."
Ukrainian cucumber prices plunge
Cucumber prices have plummeted. On the domestic market, they dropped by 200-250% to 2-3 RPH (15-23 cents) per kilo. The price drop is caused by the entry of more second-class cucumbers from the south of the country. Export prices also decreased by 150-180% to 5-6 RPH (38-45 cents) per kilo. The massive drop in demand from Russia makes the situation worse. Export prices in the autumn of last year were higher than now, at RPH 6.50 (49 cents) per kilo.
Varying figures on damage EU
ING's financial institution said that the Russian embargo could cost the EU around 6.7 billion Euro. Additionally, 130,000 jobs are at risk. Germany, as the EU's largest economy, has to contend with the greatest loss of productivity. Poland risks losing the most jobs. Relatively speaking, looking at the size of their economies, the Baltic countries would suffer the most under the embargo.
Spain sets deadline to apply for aid
The Spanish Ministry of Agriculture has set the deadline to apply for grants for information and promotional programmes of boycotted agricultural products on the domestic market and in third countries on 30 September.
The country's funding for this Community program for the promotion of agricultural products in Spain will have a budget of up to 1.2 million Euro, of which 120,000 Euro correspond to the year 2015, 400,000 Euro to 2016, another 400,000 to 2017 and 280,000 Euro to 2018.
Dutch grower lets fruit rot
A Dutch grower told the American site Bloomberg.com that he will not harvest one fourth of his pears because prices have dropped by 70%. The grower is harvesting only the best fruit. The boycott came a week before the start of the season, when the grower already had contracts with pickers and storage facilities. The harvesting costs in Western Europe are high, which is why many growers are expected to do likewise.
Flemish growers harvest more than Minister expected
The Flemish Ministry of Agriculture announced yesterday that from the 7,074 hectares of apples in Flanders, 930 hectares will not be harvested. This corresponds to 13.14% of the acreage. The growers who do not harvest will be eligible for a compensation. For Flemish apple growers, this has been set at 5,474 Euro per non-harvested hectare for members of producer organisations and half of that for non-members. As previously announced, 828.5 hectares of pears will not be harvested; less than the 2,000 hectares that the Minister had expected.
Boycotted fruit in the Moscow market
In the Moscow market, Russian authorities have found Spanish nectarines and Greek strawberries which had been imported after the boycott was introduced. Authorities are investigating how the products entered the country. It is not the first time that boycotted products are found in Russia.
Greenhouse complex to feed St. Petersburg residents
In the Leningrad region, a new Krugly God greenhouse complex has opened. The project was funded by an investment from 2010. According to the authorities, it is an advanced greenhouse for organic cultivation. The products are delivered to St. Petersburg. In the coming years, more greenhouses should be constructed so that 60% of local demand can be covered. When it comes to lettuce, the region may already be 95% self-sufficient and the goal is to reach a similar percentage with cucumbers and tomatoes.
New suppliers are lining up
In early August, Russia had several appointments with a number of countries to study its import options. In recent weeks, many countries have announced their interest in increasing exports to Russia and the list continues to grow.
Lebanon and Kenya have contacted the Russians to offer vegetables, fruits, herbs and flowers, although no concrete agreements have yet been reached.
Iran also sees an opportunity; next week, a trade delegation will visit Russia to facilitate a decision about the products that can be exported. Iran already supplies fruit and vegetables to Russia, but is willing to expand the range.
The Russian Ministry of Agriculture announced to be negotiating with Israel to increase the imports of fruit and vegetables. The Russians would also like to do business in the fields of cultivation techniques, irrigation, agricultural training and research. Tunisia also says it will increase exports and Morocco is willing to make a proposal to the same end.
Argentina wants to increase the value of its exports up to $ 2 billion. According to the Argentinian government, the boycott has created "interesting opportunities" for exporters to increase their market share in Russia. The country's main products are vegetables, fruits, dried fruits and juices.
Armenia wants to take advantage of the situation
The Armenian Producers Association wants the government to adopt drastic measures to take full advantage of the situation. The country could supply 120,000 tonnes of agricultural products in 2015. To achieve that goal there need to be investments in greenhouses, free trade zones in the border regions, government support for agricultural loans and tax cuts for growers.
According to the president of the Association, these investments would allow the country to export $ 70-80 million worth of products to Russia next year. In the first half of this year, exports of Armenia to Russia amounted to 134 million dollars; a 6.4% drop.