Russian billionaire invests in fruit and veg

Russia asked Belarus for clarification about the exotic products that are grown in the country, according to the labels. Belarus extensively answered the Kremlin's questions. A Russian billionaire is investing heavily in apple and potato cultivation. Although the borders are closed to products, horticulture techniques from Europe and the Netherlands are still welcome in Russia. The Russians urge companies to make haste, otherwise companies from other countries will seize their opportunity. The Kremlin still sees a lot of potential in agriculture particularly with more and more countries being net importers of food. Russians can be declared bankrupt as of today. Millions of Russian have high debts, but were never able to get rid of those. Now they can file for bankruptcy. Finally, Russia invests in trade relations with various countries. The ties with Ukraine, Kenya, Bosnia-Herzegovina and Israel are strengthened in various ways.

The Belarusian minister of Agriculture was asked to clarify the export of exotic products and off-season products. Russia noticed a rapid export increase of these products, giving rise to the suspicion of re-export of banned European products. The export of lettuce, lemons, melons, papaya, apples, pears and cherries is significantly higher than in previous years. According to Russia, Belarus has been ignoring the requests since December 2014.

Belarus, on the other hand, claims that the country imports the kiwis and papayas from countries that don't come under the boycott. Of course kiwis and papayas don't grow in Belarus, the country doesn't claim that either, it says. According to Minsk, the products are neatly imported according to the Russian rules, from countries that aren't boycotted. To reinforce those arguments, a Belarusian representative flew to Moscow to give an explanation.

Prime Minister Medvedev thanked the Belarusian government for the extensive answers, but couldn't refrain from make a joke about the citrus, papaya and other exotic fruit that, according to the labels, does so well on the Belarusian soil.

Russian tycoon Dmitry Arzhanov has plans for big investments in the cultivation of apples and potatoes. His company, AFG National, wants to invest in planting 300 hectares of apple orchards in 2016. In the next seven years, the total acreage is to grow to 2500 hectares, with a yield of 125,000 tonnes of apples. In addition, 40 billion roubles (606.31 million dollars) is invested in a potato facility that is to supply 500,000 tonnes of washed potatoes annually.

In order to achieve the goal of self-sufficiency, Russia is opening its doors to Dutch techniques, in order to increase the domestic production. Agrarians, vegetable growers and greenhouse builders with a lot of know-how are able to make good money, Z24 reports. Alexander Cherevko, head of the Russian trade delegation, also warned that the doors won't be open forever. If Dutch companies don't seize these opportunities, Chinese, Turkish, Korean or Israeli competitors will jump into the market.

Medvedev points to importance agriculture
In an article in a Russian magazine, Prime Minister Medvedev writes about the potential of agriculture. According to the prime minister, countries that manage to increase their agriculture export have a lot of potential in the current global economy. He points to the growing demand for food, in both the poorest countries in the world and the most developed economies. The Netherlands is an example, he says, having a strong position in global trade.

From October 1 onwards, Russians in arrears can file for bankruptcy. Millions of Russian are having payment problems, but previously these citizens had nowhere to go. Analysts, however, warn against a large number of bankruptcy applications, causing legal channels to clog up, and banks and money lender could also get into financial problems. The new law allows Russians with a total debt of more than 500,000 roubles (76,000 dollars) and payment arrears of more than three months to file for bankruptcy. For smaller debts, a bankruptcy can be requested, provided there is evidence that the debt cannot be repaid.

According to estimates, 580,000 Russians are directly eligible to file for bankruptcy under this law.

Russian Prime Minister Medvedev has said he hopes to improve trade relations with Ukraine. Trade between the two nations has all but dried up. Russia anticipates there will be no agreement between Ukraine and the EU.

Last week, a Russian delegation met with a group of representatives from Kenya, to discuss trade relations. The Russians praised the potential of Kenyan agriculture, and the willingness to establish relations with Russia. Although trade between the countries has already increased significantly, Kenya and Russia see opportunities to further encourage trade.

Bosnia-Herzegovina keeps exporting to Russia. The country is hoping to sell most of its apple harvest to Russia, for instance. The export of top fruit has already risen sharply since the boycott.

Early this month, Israel and Russia reached an agreement to establish a distribution centre for agricultural products. The centre in Primorsky Krai, Russia, is to better supply the region with food.

Kaliningrad starts export to Europe
According to reports, the Kaliningrad region started exporting vegetables to Europe last month. First to go was a shipment of 19 tonnes of cabbage across the border to Poland. According to the grower of the cabbages, this is a surplus of mid-sized calibres. Agreements are also said to have been reached for the export of other product groups.

In Crimea, the peninsula annexed by Russia, apples from Ukraine are banned, APK-Inform reports. Due to the boycott, prices are expected to go down, the export to Russia is an important part of the Ukrainian apple trade.

The Turkish region of Aegean wants to increase its export to Russia. According to the region, there is a lot of interest in grapes and cherries. Russia is an important market. In 2012, the country took over Germany's position as second most important export destination. The export to Russia continued to grow in the following years, last year the value decreased, due to the economic situation, from 55.3 million dollars in 2013 to 27.6 million dollars in 2014. This year, the counter is at 18.3 million dollars already. Main export products are tomatoes, seedless grapes and cherries.

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