Now that the European assembly on renewing the sanctions is approaching, criticism of the sanctions increases. French parliament voted against renewal, the German business community also does not much like the sanctions anymore, and the Italian ambassador thinks sanctions should not be allowed to block investments. Also plenty of news from Russia, the country is considering re-export of African products via Europe. Putin calls for Belarus to profit from the situation, countries such as Pakistan and Morocco are already doing so. Turkey loses 300 million dollar because of the boycott. Due to the closed Russian border, Iraq took the lead as main export market.
Business community wants to get rid of sanctions
This month the EU has to decide whether the sanctions against Russia are going to be renewed or not. The sanctions were imposed because of the Russian interference during the conflict in eastern Ukraine two years ago. Although that conflict has still not been resolved, the call for lifting the sanctions is sounding louder and louder in Europe.
Last week, French parliament voted on keeping the sanctions. A large majority of parliament opposes renewing the sanctions. The vote has no direct influence on the European debate, but is representative of the mood in several European countries.
The German government is still holding to the condition that the Minsk accords must be executed. The German business community, however, would rather see the sanctions lifted. The country was one of Russia’s largest trade partners before the sanctions were imposed. The longer the sanctions are imposed, the more difficult it becomes for Germany to keep their position on the Russian market.
Italian ambassador: sanctions should not be a barrier to investing
According to the Italian ambassador in Russia, mutual sanctions are not a barrier to investing. “Italy believes Russia is an important country in the world. Sanctions, both Russian and European, should not be used as a pretext or alibi to not invest in Russia,” according to the ambassador in Russian media.
“Belarus should profit from the situation”
Belarusian cultivators could export more to Russia if certain conditions are met. “It is necessary to use the current situation to raise production, for the Russian market as well,” according to President Putin during a meeting in Minsk. By saying so, Putin reacted to the continual stream of products illegally smuggled across the border. “If we do not do anything today and allow the boycotted products to reach the Russian market, it will become more difficult for Belarusian producers to gain entry to the Russian market. Meanwhile, Russian demand for apples, milk, meat and other Belarusian products exists.”
Russia is considering boycott re-export African fresh produce via EU
Russian authorities are considering boycotting the re-export of African fresh produce via Europe, according to a spokesperson of the Russian phytosanitary service to the Russian media. According to the inspectorate, Dutch and Belgian fruits and vegetables, among other things, are smuggled into the country via Belarus, claiming to be from countries such as Burkina Faso, Niger, Guinea-Bissau, Yemen and Benin.
Turkey loses 300 million because of boycott
The Turkish fresh produce sector is still feeling the pain from the sanctions. The damage caused to the sector by the boycott has meanwhile reached 300 million dollar. The damage to the tomato sector is estimated to be 100 million dollar. Between January and May export decreased by 79 per cent to 78 million dollar. During those months last year, 529,227 tonnes of fruits and vegetables were exported valued upwards of 368.1 million dollar. This year, the counter did not exceed 113,118 tonnes, or 78.1 million dollar. Exports could even have decreased by 93 per cent in May.
Especially the tomato sector is having trouble. During the first five months of this year export decreased by 39 per cent to 150.4 million dollar. A year earlier that was 246.1 million dollar. Lemon export decreases by 11 per cent to 110 million dollar. For oranges, the loss amounted to 7 per cent with an export of 78.8 million dollar. Tangerines collected a loss of 8 per cent, amounting to 54.4 million dollar.
Iraq has taken over the position as most important destination for Turkish fresh produce. Export to this country increased by 6 per cent to 143.5 million dollar. Other growing markets are Belarus (+332 per cent, 43.2 million dollar), Georgia (+107 per cent, 35.2 million dollar), Poland (+153 per cent, 21 million dollar), Ukraine (+75 per cent, 50.5 million dollar) and Azerbaijan (+100 per cent, 11.9 million dollar).
Overseas import decreasing
During the first five months of this year Russian overseas import decreased by 9.5 per cent, amounting to 57.3 billion dollar, according to figures from Russian customs. The decrease of food came to 4.4 per cent, or 1.6 billion dollar. More specifically, the import of vegetables decreased by 10.1 per cent, while the import of fruit increased by 7 per cent.
Export Morocco up 40 per cent
Moroccan export to Russia has risen sharply. Total export would have risen by 40 per cent. During the first quarter, the export of vegetables doubled compared to last year, according to Moroccan figures. The export of fruit remained stable.
Pakistan focuses on Russia
According to a letter from the chairperson of the fresh produce exporters association in Pakistan, Russia offers much potential for export. Pakistan would already have shipped 3,800 containers of quinoa and 200 containers of potatoes to Russia, an increase compared to last year. Despite Russia’s stringent phytosanitary requirements the market offers much potential for exporters from Pakistan, according to the chairperson.
Belarus most important destination for Ukrainian apples
Between July 2015 and April 2016 Ukraine exported 10,200 tonnes of apples, 78 per cent of which to Belarus, according to Fruit-Inform. Previously Russia was the most important destination for apples, with a market share of 98 per cent. Belarus’s share did not exceed 2 per cent.
Kazakhstan decreases apple import
The apple import of Kazakhstan keeps decreasing. In April the import decreased by 20 per cent to 13,000 tonnes. The previous year 16,000 tonnes were imported, according to Fruit-Inform. Between July 2015 and April 2016 import decreased by 36 per cent. The largest part (65 per cent) of this import came from Europe. Poland has the largest share of this export with 61 per cent. China follows with a market share in the Kazakh import of 20 per cent. Moldavia is in third place on the list.