Russian authorities admitted that prices are indeed on the rise since the boycott was introduced; nevertheless, the country is still looking for new partners. There are plans to meet with traders from China and other countries and Putin will be receiving the Jordanian king. China has recently registered an increase in export volumes, while Argentina appears to be losing market share in the pear market due to growing competition from Serbia, Macedonia and Turkey.
Prices increasing in Russia
The authorities continue to speak out over rising food prices. The Ministry of Finance has now stated that food prices have sharply increased since the introduction of the import ban. The Department agrees with Elvira Nabiullina, of the Central Bank, who believes that inflation should be curbed. The bank states that there needs to be a fixed target for inflation. Last week, the Ministry of Economic Development already predicted that prices will rise during the winter months.
China and Russia discuss exports
Next week, Russian and Chinese traders will meet in Sujfenhe, a town on the Chinese-Russian border, to discuss possible export agreements. The forum expects more than 200 visitors, from customs officers to logistical parties and traders. The agenda will include topics such as import standards, customs operations and the laying of a solid foundation for trade. In the first half of this year, China's exports of agricultural products to Russia increased by 32.14% compared to the same period a year earlier; an increase amounting to 47.32 million dollars. China has made it quite clear that it wishes to improve its trade relationship with Russia. The country can provide a long list of products, including carrots, ginger, tomatoes and cucumbers.
China takes over apple exports
After the fall of Poland and Macedonia as major apple exporters to the Russian market, China has taken the lead. The country is working to strengthen its position in the apple market. In August, China already supplied a third of Russia's apple imports, approximately 8,000 MT. This is an increase of 50% compared to August 2013. According to experts of APK-Inform, the Chinese dominance will be short-lived; domestic demand continues to grow, whereas a decrease in the volume is expected for 2014/2015.
Eurasian Union discusses illegal trade
The illegal import of boycotted products and the possible ways to prevent this are being discussed in the Eurasian Union (Belarus, Russia and Kazakhstan). The countries wish to set up a tracking system to monitor the products and agreed to set up a joint committee to work together against illegal imports.
Argentina exporting fewer pears
Argentinian pear export to Russia in July and August were 60% lower than in the same months last year. The total volume amounted to 5,000 MT. The main reason for this is the increasing competition in the Russian market by countries like Serbia, Macedonia and Turkey. Despite the decline, Argentina is still Russia's largest pear supplier. This season, Argentina supplied 36% of all pear imports.
In August, just before the boycott was introduced, Russia was importing 30% of its pears from the EU. The total import volume for this month was of 14,000 MT, 8% more than a year earlier. China and Serbia were second and third with a share of 29% and 21% respectively.
Putin receives King of Jordan
President Putin will receive the Jordanian King Abdullah II in Moscow. During the meeting, negotiations will be made for trade in agricultural products, while looking for opportunities for Russian companies to take part in Jordanian projects in various sectors, including energy, infrastructure and agriculture.
No shortages Azerbaijan
After the government announced its wish to increase the country's fruit and vegetable exports to Russia, the citizens feared possible shortages. The Ministry of Agriculture tried to calm these fears down with the publication of a report which concludes that there is sufficient domestic product available. Price increases in the domestic market may be caused by rising fertiliser prices, but not because of growing exports to Russia. Tomatoes, beans and cabbage, among other products, have become more expensive. This year, Azerbaijan's fruit and vegetable exports to Russia have reached 157,000 tonnes. The main products shipped are potatoes and nuts. The authorities in Azerbaijan are also working with Russia in joint ventures to set up new logistic centres.