Little chance of agreement EU on new sanctions
Russian Central Bank lowers interest
The Russian Central Bank has lowered the interest rate late last week. This way, the bank gives a clear signal that the ailing economy is of bigger concern than the increasing inflation. The interest for a loan with a duration of a week minimum, is now 14%, in January the interest rate was already adjusted downwards by two points. In the risk scenario, the Russian Central Bank reckons with a 5.8% contraction, based on an oil price of 40 to 45 dollars per barrel. In addition, the bank is expecting the financial reserves to decrease by 50 billion this year.
Chilean plums cheaper in St. Petersburg
Because of the increasing supply of Chilean plums, the price of stone fruit in St. Petersburg is under pressure. In a week, the prices decreased from 160-180 roubles (2.45-2.75 euros) per kilo to 130 roubles (1.99 euros) per kilo. At the moment, there is little demand for the plums, which are mainly bought by supermarket chains looking to increase their product range. Incidentally, the Chilean plums are also available in Moscow, where they yield 170-180 roubles (2.60-2.75 euros) per kilo.
'Government Pakistan needs to do more for export'
The Islamabad Chamber of Commerce and Industry (ICCI) has called for the Pakistani government to extend all possible aid for export to Russia. According to the ICCI, there are many opportunities for increasing the export to Russia. Pakistan could promote various products in Russia, including fresh produce, rice and dairy.
Contraction expected for Moldova
Moldova is facing a difficult year. Traditionally, the country's economy is closely linked to Russia and Ukraine. A small change in the economic situation in Russia could have big consequences for the Eastern European country. That's where the saying 'when Russia sneezes, Moldova catches a cold' comes from. Experts say Moldova should reckon with an economic contraction of 1 to 2 percent.