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G7: more sanctions if situation Ukraine doesn't change

Video: a lot of fresh produce on Moscow market

The inflation in Russia turned out lower in May than in April, a good sign for the economy. According to prime minister Medvedev, the country is largely self-sufficient. The G7 warned Russia that the Minsk agreements have to be carried out, otherwise the sanctions will be tightened. If the boycott of Moldova comes to an end, the pro-Russian province of Gagauzia will be the first to get access to the Russian market. The stonefruit season in Russia is looking to be difficult. Turkish Alanya is exporting more to Russia. Poland exported more apple juice to the US.

Russian inflation decreases
The inflation figures for May in Russia are looking more positive. While price levels were still increasing by 16.4% on average in April, in May that was 15.8%. The most important cause for the lower inflation is a price decrease of vegetables, fruit and other fresh products, such as eggs and sugar.

Russian media on Moscow market
At the start of the soft fruit season, a Russian TV station visited the market in Moscow. The footage shows a lot of fruit and vegetables being available, and an inspector of the phytosanitary service provides commentary. Unfortunately the video is in Russian, but modern technology allows translation of the subtitles; so you can still get an idea of the situation.




G7: more sanctions if situation Ukraine doesn't change
During the G7 summit, both American president Obama and German chancellor Merkel warned that additional sanctions against Russia are possible if the country keeps interfering in the conflict in Ukraine. The main demands of the two countries: Russia is to keep to the Minsk agreements and respect Ukraine's sovereignty. French president Hollande said that at the moment there is no reason whatsoever to lift the sanctions. The British prime minister also supported the demand that an end to the sanctions is only possible if the Minsk agreements have been "carried out in full".

Medvedev: Russia self-sufficient
Russian prime minister Medvedev said at the National Food Security Forum last week that Russia is largely self-sufficient. Although the import declined sharply in the first five months of the boycott, the prime minister said that wasn't visible on store shelves. "The prices for certain products remain worrying, but at the same time domestic production and import from certain countries has increased significantly," according to the prime minister.

More clarity end boycott Moldova
After the previous reports on a possible end to the Russian boycott of Moldova, more is becoming clear about the realization of this. The Russian ambassador in Moldova told media that the country is not yet ready to resume the export. The timeline for the boycott to be lifted is still unclear. Alexei Alexeienko, leading a Russian delegation, told Russian media that the Gagauzia region will be the first to be given access to the Russian market. Why this region? A factor could be that during a referendum in Moldova a few months ago, in which the population was asked whether the future of the country is in the EU or with Russia, a majority in this region voted for rapprochement to Russia. In addition, this region was also excluded in the boycott of wine.

Turkish Alanya exports more to Russia
The economic situation in Russia results in a decreased flow of tourists from Russia to the Turkish province. The export of fresh produce from the province is on the rise, however. Cucumbers and tomatoes were exported to Russia in larger volumes. In the first five months of last year, the export amounted to 1674 tonnes of cucumbers and 812 tonnes of tomatoes. This year, the counter stopped at 3475 tonnes of cucumbers and 930 tonnes of tomatoes. Percentage-wise, the export of cucumbers increased by 107.5%, and tomatoes by 14.5%. The export figures over the first months of this year are roughly the same as last year's total. The region's governor counts on more export in the first six months of 2015 than in the whole of 2014.

Russia facing difficult stonefruit season
The estimates for peaches, plums and apricots are significantly lower this year than last year, Igor Mukhanin of the Association of Fruit Growers of Russia tells FruitInform. This is caused by the lower temperatures of late. "The winter was mild. Cherries, peaches, plums and apricots suffered from temperature fluctuations. High temperatures during the day, and a minimum of 20 degrees below at night." Only the orchards at the coast didn't suffer much from these fluctuations. For apples, things are looking better. "We expect a good production this season," he adds.

US importing more Polish apple juice
The Americans are supporting the Polish apple sector by upping the import of apple juice. In the last two months of 2014 and the first two months of 2015, the US imported a record 21,020 tonnes at a value of 23.3 million dollars. In the same period over 2013/2014, the US imported hardly any apple juice. According to Miroslaw Maliszewski, chairman of the Polish Association of Orchard Producers, the opening of new markets, growing domestic demand, the compensation from the EU and increased demand for apple juice from the US have prevented a crisis in the apple sector.

Growth for frozen vegetables Russia
The Market Analysis Of Frozen Vegetable and Fruits in Russia study shows that the market for frozen vegetables in Russia decreased by 14.4% between 2010 and 2014. While in 2010 the market still accounted for 269,300 tonnes, in 2014 that was 307,900 tonnes. Vegetables accounted for 49% of the market.

Media on returned shipment Russia: opposition propaganda
Some weeks ago there were reports about Turkish products being refused at the Russian border in connection with public health. Later, reports followed that these products would be sold on the Turkish market. Now reports are emerging that it's about opposition propaganda. According to the Ministry of Food, Agriculture and Livestock, since 2011 not a single shipment was sent back by Russia due to public health concerns. Ali Kavak, chairman of the Akdeniz Fresh Fruit and Vegetable Export Union: "Russia is grateful to us for the high food safety standard. We export 1.5 million tonnes each year. The news is purely speculative."
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