Early this week, the rouble recovered a bit after the rapid fall last month. Its value increased by almost 3% compared to the euro and the dollar. The economic situation in Russia may have consequences for logistical parties and ports in Europe. The port of Hamburg saw the export to Russia go down by 5.9% last year. The Turkish export is also decreasing. In November and December, the export went down by 20%. Turkey and Russia are set to discuss the situation. Solutions may include letting go of the dollar and trade in roubles and lira. Pakistan, on the other hand, sees opportunities for the citrus and potato export. And prime minister Medvedev announced that the government will make an effort to counter unjustified price increases. According to Medvedev, there are companies that inflate prices for lucrative motives.
Crisis Russia problem for European ports
The problems in the Russian economy have consequences for the logistical service providers with routes to Russia, JOC expects. The Russian government is anticipating a 4% decline this year. The share price of Russia's largest harbour company, Global Ports, went down by 81% last year, meaning the company lost 776 million dollars of its market value. AP Møller-Mærsk, which holds 37.5% of shares in Global Ports through its subsidiary APM Terminals, says it will continue operations as planned. Russia accounts for 2-3% of the company's total profit.
The port of Hamburg will also feel the consequences. Russia is the second destination for the port. JOC calculated that the transports to Russia went down by 5.7% during the first nine months of last year, to 504,000 TEU. This declining trend is expected to continue sharper in 2015.
Turkish export decreasing
Turkish export to Russia has declined sharply in the last months of 2014 due to the difficult economic situation in Russia. In November and December, Turkey exported 20% less. Turkey wants to initiate talks with Russia to help the export get going again. One possibility that's being considered, is to pay for trade in roubles and lira instead of the strong dollar. Both currencies have lost value compared to the dollar. The devaluation is an important cause of the declining export. In general, it wasn't a bad year for the Turkish exporters. Antalya, Isparta and Burdur exported 1.638 million dollars' worth of fruit and vegetables to 151 countries. That's 6.1% more than in 2013.
Pakistan sees opportunities for citrus and potato export
Pakistan wants to increase its export to Russia of products including citrus and potatoes. The country sees opportunities for this trade. On both markets, Pakistan has a small share in the Russian market. For citrus, the export amounted to 41 million dollars for 2013-14, corresponding to a market share of 2.4%. For potatoes, the market share is 6.9%. The country exports for over 16 million dollars to Russia.
Measures against unjustified price increases
Talking to the minister of Agriculture, prime minister Medvedev said that measures would have to be taken to counter unjustified price increases. Although the prime minister admits that the prices are rising due to the disappointing economic situation in Russia, he says part of the price increases can also be attributed to sellers' speculative margins.
Turkish export decreasing
Turkish export to Russia has declined sharply in the last months of 2014 due to the difficult economic situation in Russia. In November and December, Turkey exported 20% less. Turkey wants to initiate talks with Russia to help the export get going again. One possibility that's being considered, is to pay for trade in roubles and lira instead of the strong dollar. Both currencies have lost value compared to the dollar. The devaluation is an important cause of the declining export. In general, it wasn't a bad year for the Turkish exporters. Antalya, Isparta and Burdur exported 1.638 million dollars' worth of fruit and vegetables to 151 countries. That's 6.1% more than in 2013.
Pakistan sees opportunities for citrus and potato export
Pakistan wants to increase its export to Russia of products including citrus and potatoes. The country sees opportunities for this trade. On both markets, Pakistan has a small share in the Russian market. For citrus, the export amounted to 41 million dollars for 2013-14, corresponding to a market share of 2.4%. For potatoes, the market share is 6.9%. The country exports for over 16 million dollars to Russia.
Measures against unjustified price increases
Talking to the minister of Agriculture, prime minister Medvedev said that measures would have to be taken to counter unjustified price increases. Although the prime minister admits that the prices are rising due to the disappointing economic situation in Russia, he says part of the price increases can also be attributed to sellers' speculative margins.
For fruit and veg, a price increase of 20-25% is anticipated in the coming months. The main cause of that is Russia still being largely dependent on import. Despite the investments in agriculture, production is still insufficient.