In the Russian region of Pskov, the governor found mouldy oranges in the supermarket. The leader says it's not the first time. The Russian economy is deteriorating further, poverty is on the rise, retail revenue is up and the real wages are going down. Moscow calls on Kiev to implement the Minsk agreement, which includes a ceasefire in Eastern Ukraine. The export to Russia from the Netherlands decreased last year. Not just in the sectors covered by the mutual sanctions, but interest in Russia has also faded in other sectors. According to Bloomberg, Russia currently has the most attractive investment climate of all BRICS.
Ukrainian pear import halved
In the 2014/2015 season, pear import halved, official statistics show. In the 2013/2014 season, the country imported 5200 tonnes of pear, while in the following year import was no higher than 2600 tonnes, Fruit-Inform writes. In the past decade, only the 2005/2006 import was lower, when Ukraine imported 1200 tonnes. According to analysts, the devaluation of the hryvnia in December-February is the main cause. These months are generally the peak season in the Ukrainian market.
Russia: Kiev has to implement Minsk agreements
Russia has called on the Ukrainian authorities to carry out the Minsk agreements. "Russia is concerned about the continuing crisis in Ukraine, and the problems surrounding the solution. Kiev has its own, extremely selective interpretation of the Minsk-2 agreement signed on February 12, 2015," the Russian Minister of Foreign Affairs says. The agreements include the provision of a ceasefire and retreating of heavy military equipment from the front. Since the separatists and Ukraine signed the agreement, however, it hasn't been implemented. A number of Ukrainian regions, including Donetsk and Luhansk, would get more self-determination within Ukraine, but no concrete steps have been taken toward that either. The conflict in and about Ukraine is at the heart of the economic battle between Europe and Russia. European sanctions following the Russian position in the conflict, resulted in the boycott by Russia as a countermeasure.
This week, there are reports of the separatists having begun withdrawing heavy equipment. The OSCE has observed the troop manoeuvres, but cannot confirm the withdrawal. The Ukrainian army points at the militias, who need to take the first step.
Mouldy oranges at Magnit
Governor of the Pskov region Andrei Turchak complained about the quality of oranges at supermarket chain Magnit. The politician says he found a box with mouldy citrus under the label fresh oranges. The fruit would cost 64.90 roubles (1.05 euros). It's apparently not the first time, bad fruit and vegetables were reportedly found on shelves before. The governor calls on the store to take steps.
Russian retail sees revenue fall unexpectedly fast
In June, Russian retail revenue fell unexpectedly fast, which was caused by lower wages. Over the past eight months, wages have continued to go down. Revenue decreased by 9.4%, after a 9.2% decrease in May. This decrease is bigger than the predicted -9%. The wages, corrected for inflation, decreased by 7.2%. Analysts expect consumers won't spend money on big expenses. Remarkably, however, unemployment unexpectedly went down from 5.6% to 5.4%. Unemployment was actually expected to increase to 7%.
Poverty in Russia increases further
The Russian government fails in its approach to solving the nation's poverty, The Moscow Times says. The poverty in the country is continually increasing, because the wages, corrected for inflation, have been going down for months. In May, salaries were 14% lower than a year before, and the number of people below the official poverty line increased to 22.9 million in the first quarter of this year. In the first quarter of last year, 19.8 million people lived below the poverty threshold. Russians' incomes are expected to turn out 8 to 10% lower this month than in July 2014. In addition, many Russian households were able to absorb the first blows with savings in foreign currencies, but those are depleted now.
Dutch export Russia decreases
Statistics Netherlands calculated that trade with Russia decreased sharply in the past year. On an annual basis, the export decreased by 2.4 million euros. The main causes for the decrease are the mutual sanctions. Food banned by Russia accounted for a large decrease, but electric equipment and transport equipment were also shipped eastwards less. On the import side, the import of crude oil decreased, partly due to a low oil price and oil producing countries investing in their own refineries. According to Statistics Netherlands, trade relations with Russia have cooled quite a bit, including in sectors that don't suffer from the sanctions.
Russia best investment country BRICS
According to Bloomberg analysts, Russia is the most attractive market for BRICS investments. Early this year, China was still leading by far, but in the first seven months of the year, the tables have turned. The oil price is slowly recovering, making Russia more attractive. The tension at the Chinese stock exchanges impacts the mood on the investment climate there.