Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

You are using software which is blocking our advertisements (adblocker).

As we provide the news for free, we are relying on revenues from our banners. So please disable your adblocker and reload the page to continue using this site.
Thanks!

Click here for a guide on disabling your adblocker.

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber
Canada reinforces sanctions, Russian response expected

Devaluation rouble, not boycott, biggest support growers

A study among Russians shows that most of the population believes the West wants to "humiliate and weaken" the Russians. The counter-sanctions have broad support among the population. Russian research shows that it wasn't the boycott that supported the Russian agricultural sector, but the devaluation of the rouble giving the Russian growers a particular advantage. The smuggling to the country has to be dealt with, the Russian Minister of Agriculture says. Canada reinforced the sanctions against Russia. A response is expected. And a large strawberry grower near Moscow halts the harvest, because there are problems with sales. The stalls selling at metro stations are no longer allowed, which puts sales under pressure. Pakistan sees a lot of potential in Russia for export.



Russians: "West wants to humiliate and weaken us"
A study among the Russian population shows that most Russians (66%) are convinced that the West wants to humiliate and weaken the country. Nearly half of those interviewed (46%) says the Western sanctions target a large part of the Russian population. 29% says that the sanctions mostly hit a small group of Russians. According to 19% of the Russians, the Western leaders didn't have a specific target in mind when the sanctions came into force. A large majority, 70%, is still behind the counter-sanctions, and 42% wants to strengthen the economic and military ties with countries in the Middle East and China.

Devaluation, not boycott, biggest support growers
While the Russian government is giving itself a pat on the back, arguing that the boycott supports the domestic agricultural sector, Russian researchers find a different cause. The investments by the Russian government aren't the main cause for the growth. The devaluation of the rouble provides a much greater contribution. Because of the Russian currency's sharp decline in value, imported products have become relatively more expensive. The consumer opts for the cheapest alternative, ending up buying Russian produce, which isn't affected by exchange rate influences. "The devaluation of the rouble had the biggest effect," Natalya Shagaida, director of the Center for Agrofood Policy told the Russian Presidential Academy of National Economy and Public Administration (RANEPA).

Russia wants to deal with smuggling
The Russian Minister of Agriculture, Alexander Tkachev, wants to address the loopholes in the boycott, in order to end the smuggling routes. The most well-known accusation is the illegal export of Polish apples, but products are smuggled across the border from other countries as well.

Canada reinforces sanctions; Russian response expected
Earlier this week, Canada imposed extra sanctions against Russia. The blacklist was expanded with fourteen Russian legal entities and three individuals. In addition, Canada is boycotting imported products from Crimea. A Russian response to these Canadian sanctions seems logical. According to Russian MP Aleksey Pushkov, Canada is the "most anti-Russian country in the Western alliance as a whole, and certainly within the G7 as well."

Strawberry harvest halted
The largest strawberry grower in Russia, with an acreage of 103 ha, located near Moscow, has halted cultivation, because there are problems with sales. Last year, the country was allowed to have sales stalls at the metro exit, something that isn't allowed this year. This causes the company to miss out on a large share of revenue. An additional problem is the lack of storage facilities and cooling, which means the fruit has a very limited shelf life. Due to this situation, the daily harvest is 60 tonnes, 40 tonnes of which is sold. Last year, the company harvested 80-90 tonnes a day, with sales of 70 tonnes.

Pakistan profits from boycott
The boycott provides room for Pakistan to increase its export to Russia. The country sees a lot of potential to increase export of products including fruit and vegetables, says S.M. Muneer, director of the Trade Development Authority of Pakistan in an interview with Fruit-Inform. In order to improve relations, a trade delegation is travelling from Pakistan to Russia.

Russian party calls for boycott Coca-Cola and Pepsi
The Russian Party of Pensioners calls for a boycott of Pepsi and Coca-Cola. The American soft drink firms are said to be major sponsors of anti-Russian politicians in the US, reason enough to close the borders to the popular soft drink. Of course that's not the only argument. The party also says the soft drinks contain a lot of unhealthy substances, which are harmful to public health.

Bulgaria pays growers compensation
Bulgaria has paid over 700,000 Bulgarian leva (360,000 euros) to 66 farmers who were hit by the boycott. The money comes out of the European compensation fund. The money is a compensation for nearly 4 tonnes of mushrooms, tomatoes, cabbage, cauliflower, gherkins, pears, carrots, nectarines, peaches, bell peppers, plums and apples.