A Turkish research bureau estimates that the Turkish economy has lost 11 billion dollars this year due to the Russian boycott. An Italian greenhouse grower wants to set up a lettuce growing company in Krasnodar, Russia; this same company exported to Russia last year but has stopped because of the boycott. Crimea ends its season of local produce earlier. The on and off electricity in the country means that the cooling engines go out quite often.
A survey conducted by the Turkish Social, Economic and Political Research Agency (TÜSES) says that Turkey will lose 11 billion this year. The bulk of this loss is attributable to food exports, other sectors that are affected by tourism, construction, real estate and retail. More than 28% of Turkish fruit, vegetables and white meat export goes to Turkey, which brings in 1 billion dollars. Russia is the fourth most important source of capital flows into Turkey, after Spain, the USA and the Netherlands.
Russia-Poland ties
Russia-Poland ties
Freight traffic between Russia and Poland may be postponed. Poland refuses to follow new rules set by Russian customs, says the Russian Minister of Transport. The new rules regard stricter controls over Russian permits for goods from other countries. Poland refuses to follow these rules.
Italian grower starts growing lettuce in Krasnodar
Since the boycott, more and more European companies have shown interest in opening businesses in Russia. One of these companies is the Italian company Floriano Mirro, says Fruit News. Mirro exported to the Russian market for 15 years, until the boycott made that no longer possible. Now the company wants to set up its own crops in the Krasnodar region. The company is investing 2 million Euro into 74 to 86 acres. The company has confidence in the Russian market. All documents must be signed by the end of February.
Russian importers opt for Moroccan citrus
Russian importers opt for Moroccan citrus
Russian importers are replacing Turkish citrus with Moroccan citrus. An importer told FreshFruitPortal that they should be optimistic about the citrus from this North African country. The importer says they have plans to open a packing station in Morocco. On the other hand, Moroccan exporters are worried, especially about the exchange rate. The boycott of Turkey was a positive development, but the fall of the ruble complicates the situation.
Moldovan exporters suspected of smuggling
Moldovan exporters suspected of smuggling
A few Moldovan exporters are suspected of bringing illegal products from the EU into Russia. The traders are threatening a boycott. The Russian Inspectorate is sending inspectors to the companies. Last autumn Russia eased up on Moldova.
Russia invests in Suez canal industrial zone
Russia invests in Suez canal industrial zone
The Kremlin is in talks with Cairo about investing in an industrial zone that would be built along the new Suez canal. The zone would include a logistics center. The two countries are discussing the possibilities.
Electrical problems in Crimea bad for fresh produce storage
Electrical problems in Crimea bad for fresh produce storage
Growers in Crimea are watching the quality of fruits and vegetables fall. The island, annexed by Russia, has been struggling with intermittent electricity for months. The irregular voltage on the grid is causing refrigerated cells to go out. The lack of electricity negatively effects the quality of the products. Growers expects to bring more fruits and vegetables on the market, which means the season will end earlier than planned.
Putin points out the (positive) effects of weak ruble
Putin points out the (positive) effects of weak ruble
While the value of the ruble fell to new low recently and then jumped back up a few hours later, Putin talked about the advantages of a cheap ruble. In general, a depreciating currency is seen as an alarm bell, yet the economic theorists seem to have room for a more positive look at this situation.
Due to the low value of the ruble, import between January and November last year fell by 107 billion dollars, or 37.7%, compared to 2014. This gives Russian companies, that can fill these gapes in the market, an opportunity. But Russian consumers are tightening their purse strings and consuming less, in general. Also, the technology that is necessary to increase production would need to be imported, which is expensive when the ruble is low.
On the world market Russia could have a competitive advantage. However, they do not have direct market access to export markets for many products. The most important export markets, mainly the former Soviet Republics, are not the healthiest, economically speaking. Oil producing counties like Kazakhstan and Azerbaijan are suffering from low oil prices like Russia.
The tourism sector is directly profiting from the weak ruble. Companies in this sector saw a 30% increase in revenue in the last 18 months. For tourists from other countries Russia has become a cheap holiday destination. The number of tourists in 2015 rose by 20% compared to 2014. Chinese tourists in particular visited Russia more. Also, many Russians will likely stay in Russia this year. The government has limited travel to Egypt and Turkey and not everyone can afford a vacation over the border.
Ukraine wants to export more to Georgia
Due to the low value of the ruble, import between January and November last year fell by 107 billion dollars, or 37.7%, compared to 2014. This gives Russian companies, that can fill these gapes in the market, an opportunity. But Russian consumers are tightening their purse strings and consuming less, in general. Also, the technology that is necessary to increase production would need to be imported, which is expensive when the ruble is low.
On the world market Russia could have a competitive advantage. However, they do not have direct market access to export markets for many products. The most important export markets, mainly the former Soviet Republics, are not the healthiest, economically speaking. Oil producing counties like Kazakhstan and Azerbaijan are suffering from low oil prices like Russia.
The tourism sector is directly profiting from the weak ruble. Companies in this sector saw a 30% increase in revenue in the last 18 months. For tourists from other countries Russia has become a cheap holiday destination. The number of tourists in 2015 rose by 20% compared to 2014. Chinese tourists in particular visited Russia more. Also, many Russians will likely stay in Russia this year. The government has limited travel to Egypt and Turkey and not everyone can afford a vacation over the border.
Ukraine wants to export more to Georgia
The Ukrainian government announced that it wants to increase its export to Georgia. In the first eleven months of last year their export to Georgia amounted to 196 million dollars. Georgia is a strategic economic partner for Ukraine. The total trade between the countries last year in the first eleven months of the year was worth 230 million dollars. Georgia imported mostly fruits and nuts (2 million dollars) and vegetables (1.7 million dollars).