Sergey Dankvert, head of the Russian phytosanitary service in Russia, voiced his incomprehension of Russian media about the forged certificates for re-export he says are tolerated by European customs. The inspections of companies in Hungary, Greece and Cyprus have been completed. The phytosanitary service points out that there are no negotiations at the moment with the EU about the sanctions, and there is no time scale for the sanctions being lifted. The port of Hamburg lost its second place in the ranking of largest ports in Northern Europe to Antwerp. Due to the boycott, fewer containers are entering the port. The FAO handed out seedlings to growers in East Ukraine. The World Bank is investing 12 million dollars in Moldovan agriculture, to make the sector more competitive. Apple and plum growers in particular are hit hard by Russian measures to limit trade.
Russian incomprehension for tolerance illegal re-export EU
Sergey Dankvert, head of the Russian phytosanitary service, spoke to the media about the impact of the boycott on Europe, illegal re-export and the end of the boycott. According to Russian calculations, Europe lost 3.5 billion dollars due to the boycott. "My estimation is minimal, I compared the volumes from 2013 to the current volumes," Sergey explained. The import from South America, Southeast Asia, the Middle East and Africa have actually gone up in the past months. Specific countries that increased the export to Russia are Malaysia, Thailand, Indonesia, Iran, Uruguay, Chile, Vietnam, Tunisia, Serbia and Morocco.
Sergey also voiced his incomprehension over the forged certificates for re-export he says are tolerated by some customs services in the EU. Through the special envoy in Brussels, Russia reportedly presented the procedures several times to the EU. Nevertheless, shipments are still being intercepted. "We do not understand how something like that can happen in a civilized region like the European Union," he voiced his discontent. Regarding the inspections of companies in Greece, Hungary and Cyprus last month, there are no developments. The phytosanitary service points out that there aren't any current negotiations with the EU about the sanctions, and that there is no time path for the sanctions to be lifted.
Port Hamburg loses position due to boycott
The port of Hamburg has lost its spot as the second biggest container port in Northern Europe. The port had held that position since 2011. Trade with Russia decreased by 35% in the first quarter, after which the port let go of the 10-million container target. Hamburg is an important transit port for transport from Asia to the Baltic states and Russia. In addition to the decreasing transport to Russia, the port is also suffering from Maasvlakte 2 in Rotterdam. The ranking of largest ports in Northern Europe is led by Rotterdam, followed by Antwerp, which took over Hamburg's second place.
FAO hands out seedlings in East Ukraine
The FAO is reserving 800,000 dollars to support the agricultural sector in East Ukraine. Due to the battles in the region, land hasn't been maintained, machines were burned and cattle was stolen or killed. With the new season arriving, the sector needs help to get over these problems. Earlier this month, the FAO handed out seedlings in the Luhansk and Donetsk regions to vulnerable families. The UN organization handed out 100 tonnes of early and late seedlings. The seedlings are of Ukrainian origin.
World Bank: 12 million dollars for Moldovan agriculture
On May 19, the World Bank approved a 12 million dollar funding of Moldovan agriculture. The money is part of a project to make the sector in the country more competitive. In 2013 and 2014, Moldova was hit by boycotts from Russia, an important trade partner of the Eastern European country, with Russia tightening the rules for wine, apples and plums, for instance. Before the measures, Russia accounted for 93% of the apple export, and 80% of the plum export. The 12 million dollars are going to smaller apple and plum growers, and wineries of less than 15 hectares. The fee compensates for around half of the difference between the normal sales price and the prices from the autumn of 2014.
More vegetables, fewer flowers in Russian garden
Russia appear to spend more on seeds for fruit and vegetables than on flowers and plants for in the garden. According to Andrei Tumanov, chairman of the union of 'Russian Gardeners', sales of seeds have increased by 50%. He says this is an indication of the economical situation in the country.
No agreement Russia-Bangladesh
Bangladesh and Russia still haven't reached an agreement on the Joint Trade Commission (JTC) to be established, which is to promote trade between the countries. The intentions to establish this organization were voiced in 2013 during a visit to Moscow by the president of Bangladesh. Within the organization, trade conflicts, like the one regarding the potato boycott by Russia earlier this year, could be talked about. Although Russia still says it intends to establish a JTC, they don't seem to be in a hurry with the plans.
Russia visits Egypt next week
The Russian minister of Industry and Trade is going to Egypt next week. In his wake, 100 companies will accompany him to look for investment opportunities. A Russian delegation will research agricultural products intended for export to Russia.
Significant price increases Ukraine
Prices in Ukraine for various vegetables have gone up sharply in the first months of this year. The Ukrainian Agribusiness Club (UCAB) says this is due to the cold spring, which delayed the harvest of carrots and beetroot. Carrots cost 9.5 to 11 hryvnia per kilo in April last year, this year the price is between 19 and 22 hryvnia (78-90 Euro cents) per kilo. Beetroot became nearly 1.5 times more expensive, now costing 15.5 to 22 hryvnia (63-90 Euro cents) per kilo. Potato prices went up from 22-26 hryvnia per kilo to at least 34 hryvnia (1.39 Euro) per kilo. According to reports in Ukrainian media, bananas and oranges in the supermarket are cheaper than apples.
In Mariupol, prices for imported strawberries are said to have gone down by 30 hryvnia (1.28 Euro) in the past few days. Traders told local media that the price was still 120 hryvnia (5.15 Euro) a kilo last week. Yesterday, the strawberries were offered at 50 hryvnia (2.14 Euro) per kilo. According to the traders, the price will go down until mid-June, when they will remain stable at around 20 to 30 hryvnia (0.86 to 1.28 Euro) per kilo.