Today, it's possible that Putin's disappearance will come to an end. The Russian prime minister hasn't been seen in public for over a week, resulting in a lot of speculation about his health and whereabouts. For today, a meeting with the president of Kyrgyzstan is planned. This week, the EU is also meeting to discuss an extension of the sanctions against Russia. According to an EU official, there's little chance of an agreement being reached. The Russian Central Bank has lowered the interest rate, giving a clear signal that right now the economical situation is more worrying than the increasing inflation. Due to low demand and high supply, the price of Chilean plums in St. Petersburg is decreasing. Pakistan is looking to invest in more export to Russia, and according to the Islamabad Chamber of Commerce and Industry, the government should help with that.
Little chance of agreement EU on new sanctions
According to an EU spokesperson, there is little chance that the leaders of the EU will reach an agreement this week about extension of the sanctions against Russia. New sanctions aren't planned either, the EU wants to give the fragile ceasefire in Ukraine a chance. Some member states want to discuss an extension of the sanctions this week, but there is little chance of a majority being in favour of extending the sanctions. Last week, several leaders of EU countries were already critical of the sanctions.
Incidentally, Hungary will negotiate with the EU about the controversial deal with Russia regarding nuclear energy. Russia wants to help Hungary improve the nuclear plant, the EU isn't sure about this deal.
Russian Central Bank lowers interest
The Russian Central Bank has lowered the interest rate late last week. This way, the bank gives a clear signal that the ailing economy is of bigger concern than the increasing inflation. The interest for a loan with a duration of a week minimum, is now 14%, in January the interest rate was already adjusted downwards by two points. In the risk scenario, the Russian Central Bank reckons with a 5.8% contraction, based on an oil price of 40 to 45 dollars per barrel. In addition, the bank is expecting the financial reserves to decrease by 50 billion this year.
Chilean plums cheaper in St. Petersburg
Because of the increasing supply of Chilean plums, the price of stone fruit in St. Petersburg is under pressure. In a week, the prices decreased from 160-180 roubles (2.45-2.75 euros) per kilo to 130 roubles (1.99 euros) per kilo. At the moment, there is little demand for the plums, which are mainly bought by supermarket chains looking to increase their product range. Incidentally, the Chilean plums are also available in Moscow, where they yield 170-180 roubles (2.60-2.75 euros) per kilo.
'Government Pakistan needs to do more for export'
The Islamabad Chamber of Commerce and Industry (ICCI) has called for the Pakistani government to extend all possible aid for export to Russia. According to the ICCI, there are many opportunities for increasing the export to Russia. Pakistan could promote various products in Russia, including fresh produce, rice and dairy.
Contraction expected for Moldova
Moldova is facing a difficult year. Traditionally, the country's economy is closely linked to Russia and Ukraine. A small change in the economic situation in Russia could have big consequences for the Eastern European country. That's where the saying 'when Russia sneezes, Moldova catches a cold' comes from. Experts say Moldova should reckon with an economic contraction of 1 to 2 percent.