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Kremlin preparing extension of sanctions

EC president Juncker visits St Petersburg

The Kremlin is sending a double message. On the one hand, preparations are underway to extend the boycott; on the other hand, Putin says he will lift the sanctions imposed if the West lifts them, too. EC president Jean-Claude Juncker is the first senior Eurocrat to visit Russia since the crisis began in 2014. Russia refuses to participate in a Turkish working group to improve the relationship between the two countries. Iraq is the largest market for Turkish citrus, Armenia is investing in greenhouse cultivation and Jordan strives for fewer restrictions on trade with Russia.

Kremlin prepares for extension of sanctions
On behalf of Prime Minister Medvedev, the Russian Minister of Agriculture is preparing to extend the boycott until late 2017. There are no talks about expanding the list of products. "The Russian Ministry of Agriculture has started preparing an extension of the sanctions until the end of 2017. The list of boycotted agricultural products will not be expanded; it will only be an extension," said the Minister of Agriculture. "This is good news for the domestic agricultural sector."
Officially, the boycott was to last until August. This extension entails that the border will remain closed to European agricultural products for another year and a half. For its part, the European Union will be discussing the renewal of its sanctions against Russia next month.


President Putin and Greek premier Tsipras gave a joint press conference after the Russian visit to Athenes. Source: Kremlin


During his visit to Greece, Putin also conveyed another message. At a press conference, he said: "As for the sanctions, that's not our problem; we did not set them; we only reacted. As soon as our partners lift the sanctions, we will lift our embargo..."

Juncker visiting Russia
In June, the President of the European Commission, Jean-Claude Juncker, will visit the international economic forum held in St. Petersburg. This is the first senior European official to visit Russia since the crisis in Ukraine went out of control in 2014. Officially, a conversation with President Putin is not on the agenda, but it is "obvious" that the two will meet during the forum. A few days later, the EU will make a decision regarding the extension of the sanctions.
The European sanctions are linked to the implementation of the Minsk agreements. If carried out, Europe says it will consider lifting the boycott. Prospects, however, point to an extension of the sanctions. Meanwhile, support for the boycott is growing weaker in some Member States. Putin recently visited Greece to lobby against the extension. Italy, the Czech Republic and Hungary are not in favour of it; these countries suggest that the sanctions are also damaging the European economy. France will also vote in favour of lifting the sanctions. The German Foreign Minister recently stated that Europe would not benefit from a Russian economic collapse. Most support for the measures can be found in Eastern Europe, particularly in Poland and the Baltic states.

Russia rejects working group with Turkey
The Kremlin refused to set up a working group to improve its relationship with Turkey. Ankara proposed to set up the group after Putin, while visiting Greece, said that the task of the Turkish government is to "take concrete steps to improve the situation." Commenting on the Turkish proposal, the Kremlin reported that "no group can solve the problems. It is something that only the Turkish government can tackle."

Former Minister asks Putin to reduce geopolitical tensions
Former Finance Minister Alexei Kudrin asked President Putin to reduce the geopolitical tensions in order to stimulate the economy. According to the former Minister, Russia should become more willing to integrate in the international market in order to reduce its technological gap. The Russian economy is in dire straits due to the low oil prices and the Western sanctions.

Iraq takes first place from Russia
Iraq has taken from Russia the position of main trading partner for Turkish citrus. This is evident from statistics. Russia used to rank first with over $ 90 million in Turkish citrus exports. This season, Iraq has taken this position with 84 million dollars. Citrus exports are especially important for the Turkish Çukurova region, where 90 percent of the crop's cultivation concentrates. Between January and April this year, 527,000 tonnes of citrus have been exported worth 273 million dollars.

Armenia exports more cucumbers and tomatoes
Thanks to the expanding greenhouse acreage, the export of cucumbers and tomatoes from Armenia has increased in recent years. According to statistics from the Armenian Ministry of Agriculture, Russia, Georgia, Belarus and the Czech Republic are the most important markets for its cucumbers and tomatoes. The acreage has reportedly increased by 120 hectares over the past two years and this year another 70 hectares should be added.

Russia destroys 12 tonnes of Ukrainian strawberries
Russian inspection authorities have destroyed 12 tonnes of strawberries from Ukraine. The summer fruits were introduced as Serbian, but inspections revealed that this was not the case. In the packages there were clearly visible traces of new labels and patches of old labels. Inspectors also ordered the destruction of a tonne of Polish apples which had crossed the border without the necessary documents.

Jordan wants preferential treatment Russia
The Jordanian government is committed to obtaining preferential treatment from the Russian government. The lower import tariffs and weaker trade barriers should increase exports. Jordan mainly exports tomatoes. In the first months of this year, the country's total fruit and vegetable exports amounted to 162,000 tonnes. Last year, it was 214,000 tonnes.