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Nikolai Patrushev: “West wants to take over the world”

Limited impact boycott on greenhouse vegetable sector

In general, the Russian boycott has little impact on the Dutch greenhouse vegetable sector, accountancy firm Accon writes in a press release. Egyptian export to Russia doubled last year, Egyptian exporters report. Russia is also in talks with Chile and Thailand to increase export. China is simplifying customs regulations for Russian companies from the border region. The Russian phytosanitary service announced stricter inspections for American peanuts. Finally, the rouble’s recovery is continuing, Putin and Medvedev declared more income for their tax return, and a high Russian official claims the West is not making an effort for Ukraine’s economic recovery.

Limited impact boycott on greenhouse vegetable sector
The majority of Dutch growers of tomatoes, cucumbers and bell peppers have worked below the cost price in the past year. This is a consequence of the low prices for vegetables in the spring and summer of 2014. Against expectations, the Russian boycott has had hardly any impact on greenhouse vegetable cultivation, an analysis by consultancy and accountancy firm Accon avm shows. Fruit growers were hit harder, and saw prices go down as a result of the trade restrictions. Accon avm says the difference in pricing after the Russian boycott can be explained due to fruit cultivation being more of a European market. Greenhouse vegetables are only grown in a few countries.

Russian economy recovering?
The Russian economy seems to be recovering. That is to say, according to official figures the inflation is lower, and the rouble has been regaining value for a number of weeks. Although on average prices are still going up slightly, prices for cucumbers, apples and potatoes went down slightly. The rouble reached a value of less than 50 roubles to a dollar this week, a record since November. The Russian Central Bank sees no reason for intervention yet. “We have a liberal exchange rate, which means the bank doesn’t intervene in trends that arise from market forces.”

Income Putin and Medvedev doubled
Tax returns from Russian president Putin and prime minister Medvedev show that both have declared twice as much income than in 2013. Putin reported his income to be 7.6 million roubles (143,000 Euro), a year before he declared an income of 3.6 million roubles. Medvedev reported 8 million roubles (151,000 Euro) on his tax return. In 2013, that was 4.2 million roubles.
On the day the tax return was made public, Putin gave himself and the prime minister a salary increase of 265%. Only last month, he lowered the salaries of several top officials, including that of the prime minister, by 10%. According to Russia, Putin has no other income than from his presidency, although CNN reporter Bill Browder calculated in February that Putin is probably the richest man in the world. He estimated the Russian president’s capital to be 200 billion dollars in shares, investments and capital in Swiss bank accounts.

Egyptian export Russia doubled
Since the boycott, Egyptian exporters have shown more interest in trade with Russia. Last year, 150 new Egyptian companies signed up with Russian authorities to export agricultural products. Egyptian exporters already work together with 20 big Russian retailers. “The Egyptian export of fruit and vegetables to Russia doubled in 2014 compared to 2013,” the Egyptian exporters say. Russia could be a market for products including lettuce, dates, figs, avocados, pineapple, mangoes and guava.

Stricter inspections American peanuts
The Russian phytosanitary service has announced stricter controls on peanuts from America. Extra attention is paid to cadmium residue levels. The inspections were tightened after an exceedance was found in a 25-tonne batch from the American Golden Peanut Company. According to Russia, the inspection found 0.17 mg per kilo, while the limit is 0.1 mg.

Nikolai Patrushev: “West wants to take over the world”
Russian Nikolai Patrushev, member of the Security Council, argued in Shanghai that the West is trying to take over the world. He says the investments in Ukrainian agriculture are a plot by big Western companies to grow GMO crops in the country. “It becomes ever clearer that Western companies aren’t planning to help the Ukrainian economy recover. They want to turn Ukraine into an agricultural economy,” Nikolai argued. When it comes to the GMO crops, Nikolai is right. In the treaty the EU signed with Ukraine last year, a clause is included that makes GMO cultivation possible in Ukraine. Within the EU, member states are given the opportunity to ban these crops.

Chile ready for more export Russia
Last week, the head of the Russian phytosanitary service and the Chilean ambassador met to negotiate more Chilean export to Russia. Russia does want to carry out inspections in Chile. In November last year, the inspection found violations of regulations in Chilean companies, but the Chilean ambassador says these problems have been resolved.

Chinese customs relaxes rules Russian export
In May, Chinese customs will start phasing out regulation and procedures related to import from Russia to China. The decreased regulatory burden mainly benefits Russian companies in the border region. The inspections are to be transferred to lower bureaucratic levels, and in general companies should be given more chances.

Russia wants to import more Thai exotics
During a visit to Thailand, Russian prime minister Medvedev announced that there is an interest in increased import of fruit from the Asian country. In the wake of the prime minister, the phytosanitary service accompanied him to negotiate with the Thai inspection service.