Russian import decreased by 35% in the first quarter. The most important cause is the economic situation in the country meanwhile the rouble seems to be recovering further. Indian fruit importer and exporter IG International expects to profit from the boycott this year, by increasing the export to the Russian market. And although the first test shipment of Polish apples arrived in India last month, the Polish minister does not expect to find enough new markets in the short term. Russia again stopped a shipment of Polish apples, the authorities believe the apples won't be transported to Kazakhstan, but will end up on the Russian market. Apple import in Ukraine has increased significantly. According to analysts, the biggest part is transported to Russia through Crimea.
Russian import -35%
In the first quarter of 2015, Russian import decreased by 35%. According to Russian customs statistics, 37.9 billion dollars worth of products was imported in the first three months, while a year before that was still 59.1 billion dollars. These figures do not include import from a number of bordering former Soviet republics. A cause for the decreased import is the weak rouble, but the boycott and the sanctions also play a role. The value of the rouble has been rising steadily since the start of this year, by the way. After the lowest point of almost 85 roubles for one euro in December last year, the exchange rate is now around 60 roubles for a euro. With that, the currency is not yet back to the level of before the devaluation, when a euro cost around 50 roubles.
Russian Central Bank wants own rating agencies
The Russian Central Bank slowly wants to move away from the international credit evaluators, switching to Russian rating agencies. There are several Russian credit rating agencies, with the bank and the government wanting these ratings to be used. It's not the first time that a country wants to get rid of international credit evaluators like S&P and Moody's, during the crisis in the EU, a call for a European credit rating agency was heard several times.
Indian grape exporter expects growth
One of the biggest importers and exporters of fruit in India, IG International, expects the grape export to grow this year, thanks to the Russian boycott. In the latest fiscal year, the company exported 2 million dollars' worth, hoping to achieve twice that amount this year. Half of the export went to Europe, and around twenty percent to the United Kingdom. Russia accounted for 800 containers from India, this year IG International is expecting growth. "The US is the largest producer of grapes, followed by Chile, Peru, South Africa, Spain and Argentina. The Russian boycott of American grapes gives us a lot of opportunities," Tarun Arora, director of IG International, told Indian website Financial Chronicle.
Poland stuck with apples
Despite the efforts of the Polish government to find new markets for Polish apples, the export is disappointing. The minister of Agriculture said it's unlikely that more than 40% of the volume will be exported. "We have to look for new markets, but in the short term this won't be completely successful." New markets such as India, Indonesia, Singapore or the US are needed to take up Polish apples. In addition, Polish exporters shouldn't get discouraged by small volumes. Because, the minister argues, these volumes can grow.
First Polish apples in India
After an agreement was reached last year, the first Polish apples arrived in India late last month. This is a first test shipment, to look into quality, packaging and safe arrival. With this shipment arriving safely at Indian importer Yupaa, a programme is being worked on. Yupaa imports Royal Galas from Poland, an apple that's well-known on the Indian market, and is priced attractively.
Russia stops Polish apples
The Russian authorities are not convinced that the recently intercepted shipment of Polish apples, which the documents say would be transported to Kazakhstan through Belarus, would actually end up on the Kazakh market. The authorities believe the apples would have ended up on the Russian market. Around 19 tonnes of apples were stopped at the border early this month. It is unknown whether the apples have been destroyed or sent back.
Ukraine imports more apples
The apple import in Ukraine in January is ten times higher than in the same month last year. This year, the country imported 6500 tonnes, a year earlier that was about 600 tonnes. The import between July and January amounted to 22,000 tonnes, six times more than in the previous year. In Ukraine, demand for imported products has decreased due to the weak economy. According to analysts, most of the apples, mainly originating from Poland, are transported to Russia through Crimea.