The European ministers of Foreign Affairs have reached an agreement on extending the sanctions against Russia. There was some uncertainty on the Greek point of view beforehand, but in the end the Greek minister acceded. The government leaders still need to have their say on the agreement. Moldova, meanwhile, is negotiating with Russia about resuming the apple export. And Serbia and Russia want to work together to combat illegal export. The Russian government says it almost exclusively buys domestic produce, and in the Ural, the local government is angry about the import of soft fruit, with berries growing in the wild in that region. Israel has shown interest in a free trade zone with the EEU, while Belarus threatens to leave the union.
EU extends sanctions Russia
The EU is extending the sanctions against Russia. During a meeting this week, an agreement was reached on the extension. The imposed sanctions against individuals had been announced for a year, and were to end in March, but they're now extended by half a year. Before the meeting of the Foreign ministers, the Greek response was feared. Greece does not want to further increase the divide between the EU and Russia, so there was uncertainty about the Greek agreement with the extension. In the end, the minister acceded. The government leaders still need to have their say on the decision, that meeting is planned for February 12.
Moldova and Russia negotiate on apple export
Representatives of Moldova negotiated with the Russian phytosanitary service on resuming the export of apples. Moldova is also boycotted. According to the authorities, the old Soviet republic is willing to give guarantees that the export meets strict demands regarding food safety. Moldova was hit hard by the boycott. In December, the European Parliament also accommodated Moldova, allowing the export of 40,000 tonnes of apples, 10,000 tonnes of grapes and 10,000 tonnes of plums. Most of this export ended up in Romania.
Serbia and Russia tackle smuggling together
Serbia and Russia have agreed to tackle the export of illegal products together. Last year, Serbia was suspected of exporting banned products. According to the Russian phytosanitary service, Serbian exporters, like their Turkish colleagues, have fallen victim to international swindling to circumvent the boycott. The countries want to cooperate to tackle the illegal export.
Israel interested in free trade zone EEU
Various countries are interested in establishing a free trade zone with the EEU, the economic union of a number of former Soviet republics, including Russia, Kazakhstan and Belarus. Israel is also interested in such an agreement. The negotiations are still running.
Belarus threatens to leave EEU
Belarusian president Lukashenko is threatening to leave the EEU if the agreements within the union aren't honoured. According to the president, it's unacceptable for a trade war to arise between members, referring to disagreements between Russia and Belarus on food import and export. According to Lukashenko, the union is purely economic, and that this is also Kazakhstan's point of view. By saying this, he suggests that Putin wants to use the union for political purposes.
Russian government chooses local produce
According to the head of Russia's presidential staff, domestic produce is purchased almost exclusively at government level for state affairs. Vegetables, fruit, dairy and meat of Russian origin are bought as much as possible.
Government Sverdlovsk angry about soft fruit import
The government of the Sverdlovsk region in the Ural is angry about the import of frozen soft fruit. According to the government, it's absurd that, for instance in dairy products, imported soft fruit is used when many berries are growing in the wild in the region. According to a restaurant owner in the region, it's hard to do business with domestic parties, because the prices are increased without notice, with traders from Moscow buying a lot of soft fruit from the region in autumn in particular. In addition, a regional minister pointed out that only two outdated companies in the region are able to process the soft fruit.
Muscovites hoarded in December
Retail revenue in December went up by 5.3% on an annual basis, and 23.6% compared to a month earlier. The wages went down by 4.7%, however, compared to 2013. According to analysts, the revenue increase is mainly caused by hoarding consumers. For fear of further price increases following the weakening rouble and the bad economic outlook, Russians are said to have begun stocking up. The authorities are looking into the price increases, and in Moscow alone there are reportedly 400 lawsuits against retailers already.