Russia turns away pears because of date on documents

Yesterday there was some confusion on the possibility of exporting to Russia from the southern hemisphere via Europe. A South African trader said it was not possible, a Dutch trader confirmed he was able to export normally. That the paperwork has to be in order down to the minutest details, can be seen from the report that Russian authorities intercepted pears. Although the documents met the requirements, the date filled in is later than the product left Chile. The Russians did not accept these shipments and imposed a fine.

Attempts are still being made to get European products into Russia through Belarus, with customs saying they have prevented 80 such attempts. Nevertheless, European products are still turning up on supermarket shelves. China and Azerbaijan want to export to Russia, but Azerbaijan would like to keep its market share when the boycott is lifted. And Russia keeps investing in new agricultural projects. The Russian potato market is getting through the boycott relatively unscathed, partly because of a good harvest in Russia.

Agro parks in Russia
Although the plans of the Russian Ministry of Agriculture do not mention agro parks, there is a good chance of these parks emerging over the next years. The government wants to invest money in infrastructure and logistics of the market, and companies are promoting the agro parks. An agro park combines cultivation, storage, processing and distribution of agricultural produce in one location. The agro parks are mainly a solution for regions where the necessity of replacing import is high. According to expectations, Russia should number eleven agro parks in 2017.

Banned vegetables in supermarket
At the end of August and earlier this month, Russian authorities found banned fruit and vegetables at supermarkets and retailers. On the border with Belarus, the Russians intercepted 80 attempts to get European produce across the border. Fines of 100,000 roubles (2000 euros) were imposed. Retailers say these are products that were imported before the boycott, according to the authorities it’s not possible to store the products all this time.

Belarus popular transit hub for export
Apart from illegal export, where products get a forged country of origin label, there is another way to export to Russia. After processing products in Belarus, these products are eligible for a Belarusian label. For instance, Norwegian fish is packaged in Belarus, after which it can be freely exported under the Belarusian label.

Azerbaijan convinced of possibility more export
The Azerbaijani ambassador in Russia has once again stated his country is ready to increase export. Vegetables, fruit, eggs, poultry and other products are available from Azerbaijan. According to the ambassador, the country is self-sufficient. He does think it’s important that there’s still demand from Russia for the products if the sanctions are lifted. At the moment, administrative customs procedures make export more difficult.

Chilean pears turned away because of date
In St. Petersburg, a shipment of pears was intercepted of which the country of origin was unclear. The pears were supposedly from Chile and shipped to Russia through the Netherlands, but Russian authorities did not accept the accompanying documents. Although the paperwork gives all the information about the fruit, the filled-in date is incorrect. On that date, the shipment was already on its way to Russia. This wrong date renders the documents invalid. The pears were meant for a supermarket, but the authorities held back the shipment. The owner and the recipient of the fruit were fined 22,000 roubles (440 euros).

Potato market not hit by boycott
According to APK-Inform, the boycott doesn’t have consequences for the Russian potato market. The potato harvest was above average this year, so little import is needed. The main potato suppliers to Russia are Egypt, China and Israel. These countries saw their market positions improve after the boycott was imposed.

Taxes on Ukrainian merchandise
In response to the Ukrainian signing of the association agreement with the EU, Russia has imposed additional import duties on Ukrainian wares. Among the list of 174 products that will become more expensive to export to Russia, are agricultural products, including fruit. Medvedev had already warned the Ukrainians that measures would be taken if Ukraine puts into action the economic terms in the agreement before 2016.

China ready for export
According to Chinese authorities, the country is able to completely fulfil Russian demand for fruit and vegetables. The focus is mainly on the Shandong region, a fertile region where carrots, ginger, garlic, bell peppers, peas, pumpkins, tomatoes, cucumbers, broccoli, peaches, pears, grapefruit and watermelons are cultivated. Next month, a subsequent round of negotiations is planned between the two countries. The Russo-Chinese trade in agricultural products reportedly yields around 20 billion dollars. Russia confirms it’s in talks with Chinese parties, and Chinese companies reportedly have plans to establish companies in Russia.