Russia is expanding the sanctions. Following suspicions of European re-export through Ukraine, Russia is closing its borders. Kiev did not respond to the Russian request to explain the increased export volumes, after which the borders were closed. The boycott also goes for re-export. Sanctions against Europe were also expanded, but are only related to the meat industry. In addition, state-owned companies may only purchases cars and heavy machinery from Russian producers.
Russia expands sanctions
The sanctions on meat products and offal are expanded, with the Russians saying harmful substances have been found several times lately in meat products from the EU. Therefore, the borders will also be closed to these products. Russia is also imposing restrictions on state-owned companies. The companies may not import cars and heavy machinery. This way, Russia wants to stimulate domestic industry.
Russia boycotts Ukraine
Starting today, Russia is closing its borders for fruit and vegetables from Ukraine. There has already been some talk about upcoming sanctions. Moscow suspects the EU of circumventing the boycott via Ukraine, which is why Kiev was asked to explain the increased export volumes. Moscow says they haven't received a response from Kiev. Therefore, Russia is closing its borders for Ukrainian produce and transit. Russia says it wants to prevent the spread of diseases with the boycott, but also indicates the sanctions will remain in force until Ukraine puts a country-of-origin label on all products.
Prices Ukraine increase by 2%
According to statistics, consumers in Ukraine had to pay 2% more for groceries last week. A week earlier, prices were still decreasing by 3.8%. According to local specialists, the price fluctuations are caused by the changing production season, causing an unstable market. The end of the greenhouse season coincides with a price change for imported vegetables. On the export side, volumes are also increasing, particularly for onions.
Russian supermarkets optimistic
An IGD Retail Analysis study shows that Russian supermarkets are not expecting big problems. The retailers remain optimistic, seeing new opportunities for countries not subject to the boycott. The supermarkets do expect the increase in the number of stores to slow down in 2015.
Relationship South America and Russia strengthened
Russia is working on its relationship with countries in South America. To the EU's dismay, Moscow looked to South America after the boycott came into force. Direct trade relations were to be established. Although the total trade between Russia and Latin America amounts to around 16 billion dollars, less than the first-quarter trade in 2013 between Germany and Russia, this amount has doubled over the past ten years. A large part of the relationship concerns trade in non-fresh produce, with a lot of products being set up together in the energy sector in particular. At a political level, relations with these countries are also being strengthened.
Putin trades technology for food
During a visit to Belgrade, Serbia, Putin announced his desire to triple the import of food from Serbia, to a value of half a billion euros. In exchange, the Russians want to help the Serbians modernize the chemical industry.
Greenhouse centre Novgorod increases production
According to regional authorities, greenhouse centre LLC Novgorod Greenhouse is increasing its production to 40 tonnes a day. A third of the vegetables is supplied to the local market, the rest is intended for other regions. This year, until October 16, 1800 MT of greenhouse vegetables are already reported to have been grown in the centre. Last year, 2700 MT of cucumbers were grown in the greenhouse.
Harvest Moscow region turns out higher
The Moscow region announced this season's harvest figures. The potato harvest amounted to 878,000 MT, for vegetables this was 644,000 MT. The volume of potatoes went up by 27% compared to last year, the vegetable volume is 24% higher.
Azerbaijan export increases, import decreases
Between January and August, export of vegetables from Azerbaijan increased by 34% compared to the same period last year. In figures, this amounts to 168 million dollars now, compared to 125 million dollars in 2013. The export of fruit and vegetables makes up a small amount of the total Azerbaijani export, with the fresh produce amount hovering around 1%.
Import of fruit and vegetables decreased by 18% in the same period, to almost 18 million dollars, versus nearly 22 million dollars a year before. The fresh produce share in the import fluctuates around 0.3%.