Copa Cogeca: EU extends support measure

Russia says it wants to support Greece by supplying energy and guarantees to Russian companies investing in Greece. In the Russian parliament, a proposal was made to lift the boycott against Greece. Copa Cogeca reports that the EU is extending the support measures for the agricultural sector. Later this week, a concrete proposal from the Euro Commissioner is expected. Apple prices in Russia are under pressure, as are pear prices in Ukraine. On the other hand, prices for imported apples in Ukraine rose.

Russia wants to aid the Greek economy by working together in energy, Russian Minister of Energy Alexander Novak said on the even of the round of negotiations between Greece and Europe. "We are looking into options to supply energy directly to the Greek government, and they can start in the near future," the minister said. The chances of the country buying Greek euro bonds are slim though. Russia is prepared, however, to offer guarantees to Russian companies that want to invest in the construction of the Turkish Stream gas pipeline, which also goes to Greece.

Russian members of parliament called on President Putin to lift the embargo on Greek products. According to the initiators, this would have a positive effect on both Greece and Russia. Initiator is Andrei Krutov of 'Fair Russia'. He points out the good relations between Greece and Russia, built between 2010 and 2013, and the small overlap in production between the countries. He also points to the cultural ties. Greece is one of the few Orthodox countries in Europe. The proposal lies before the Russian president. Ultimately, Putin will have to decide on lifting the sanctions.

Russian import figures show that during the first five months of this year, less fruit was imported from faraway destinations. The import from overseas decreased by 6.6%. In vegetables, on the other hand, the import value went up by 15.6%. In general, the import from overseas went down by 38.7%, that is over 63.3 billion dollars.

In the past month, six Russian military aircraft crashed: two bombers and four fighter planes crashed during exercises. Since the crisis in Ukraine, Russia has upped the number of exercises for its air force, and the NATO response speed is regularly tested over the Baltic states, Western Europe and the American West Coast. Last year, NATO intercepted 400 Russian planes, 50% more than in 2013. According to military experts, the higher intensity training programme plays havoc with the outdated equipment. Incidentally, there are also many reports on Russian investments in new military equipment.

Copa Cogeca: EU extends support measure
According to the European lobbying group for the agricultural sector, the European Commission has decided to extend its support to the sector. The organization is pleased with the decision, pointing out that the boycott has led to combined losses of 5.5 billion euros. Later this week, a proposal by Euro Commissioner Phil Hogans is expected, providing more clarity on how the measures will be implemented.

The prices for early apples have decreased by 20% due to a supply surplus. While two weeks ago Early Geneva saw the biggest supplies, Belyi Naliv has large volumes on the market as well now. The price development is comparable to other years. In roubles, however, the price is twice as high. One kilo of apples costs between 40 and 50 roubles (0.69-0.87 dollars). A year before, that was 25-30 roubles (0.72-0.86 dollars).

Serbian investors are investing in the construction of a storage facility for fruit and veg in the Russian region of Penza. The centre is to offer space for 50,000 tonnes of produce, and costs 3 billion roubles (48 million euros). Construction is to start in the second half of this year. In 2018, the centre will be operational.

Sellers at the Dubuvo wholesale market in West Ukraine report that prices for pears have decreased sharply. The price is between 45-48 hryvnias (1.69-2.09 dollars) per kilo, while a week earlier the price was 60 hryvnias (2.78 dollars) a kilo. Demand for pears is under pressure, because most consumers prefer summer fruit. Nevertheless, prices are still 43% higher than last year because of inflation. Converted to dollars, the price decreased by 25%. Imported apples, on the other hand, became more expensive. At the Shuvar wholesale market, near Lviv, West Ukraine, the price increased by 10 to 12% last week, compared to the week before. The apples yielded between 20 and 22 hryvnias (0.87-0.96 dollars) a kilo. The prices are on average 3.5 times higher than in the previous year. In dollars, the prices doubled. The first new harvest from the country itself also came to the market. The season started without delays. The apples yielded between 8 and 15 hryvnias (0.35-0.65 dollars) per kilo.

The export from Bulgaria to Russia dropped 42% in the first quarter, compared to the previous year. The sector is facing a number of problems as well. In the past 20 years, many processing plants have been shut down. In addition, many individual growers don't have the capital to invest in refrigerated trucks, for instance. The only way forward is working together through producer organizations and cooperatives that receive EU support, one industry association says.

The agricultural sector in Azerbaijan is shrinking, figures from the Ministry of Agriculture show. The acreage for winter cultivation decreased by 6.5%. The sown area decreased by 10.4-16.9%. This decrease applies to all crops, except grains, the acreage of which increased. Government efforts are already showing the first positive signals, however. The production of potatoes, vegetables and fruit increased by 0.7%, 11.8% and 2.6% respectively.

Since the start of this year, Moldovan export has increased significantly. According to the Ministry of Agriculture, Moldovan growers have found new markets. Between January and June, more than 6600 tonnes of cherries and 1900 tonnes of morello cherries were exported. In the same period, 600 tonnes of raspberries were exported to the EU and former Soviet republics, three times as much as a year before. The EU accounted for 70% of sales. Vegetables show a similar view. The potato export was around 8 tonnes: cabbage 108 tonnes, 166 tonnes of carrots and turnips, and more than 4000 tonnes of onions.

Growers in Chechnya want to start growing American potato varieties. They shouldn't just yield enough for the local population, but be suitable for export as well. Analysts predict around 5000 tonnes can be harvested. Eventually, production is to reach 50,000 tonnes. The region is one of the biggest potato producers, with an annual volume of around 150,000 tonnes.

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