Oleg Pugaev, Agricultural Counsellor at the Embassy of the Russian Federation to the Kingdom of the Netherlands, talked to FreshPlaza and offered some updates regarding the situation with the Russian ban on agricultural imports from the EU, as well as its future developments.
We heard many rumours about a lifting of the ban on some products for some countries. What is the official position on this subject from the Russian Government? How likely is it that the boycott will be extended in August?
The Russian ban on the import of agricultural products from a number of countries, including the EU, was a response to the western sanctions. According to Russian Prime Minister Dmitry Medvedev, some changes related to lifting the ban on specific products are expected in June. But the question of complete abolition of the boycott still fully depends on the EU’s actions.
Since the ban, have any dramatic changes occurred? And as far as you can see, how are Russian consumers adjusting to the new products available in the market, such as new varieties being sold coming from non-EU countries?
The situation on the Russian market is stable. Of course food prices grew significantly, but the key reason is the depreciation of the Russian Rouble, mainly caused by unfavourable conditions on the oil market. After many years of stable trade relations and partnerships, Russian consumers were used to finding Dutch cheese, paprika and pears in supermarkets, and now they have to change their tastes and preferences.
There are many articles about investments in the Russian horticultural industry (large greenhouses and storage facilities). Can you tell us something about this?
Large investment projects related to horticulture have been launched in a number of Russian regions over the last decade. Most of them are implemented with participation of Dutch companies. In 2015, the Government intends to spend about RUR 3 billion (about EUR 50 million) to boost the horticultural industry.
Russia allows imports of Dutch seed potatoes. Can you tell something about the Russian potato industry? Is the acreage growing? Is the imported volume of seed potatoes increasing, and what is the reason for this?
The average acreage is quite stable, about 2.2 mln ha. Last year, Russia imported about 10,500 tonnes of seed potatoes from the Netherlands; in 2015, it went up to about 15,000 tonnes. The cause for this significant increase is the plans from Russian growers to improve their efficiency by using better plant material, and they are ready to pay more for this (in February-March 2015 Rouble depreciation reached 45%).
Are potatoes an important ingredient in the Russian cuisine? How does the market look like? Where are the major potato growing areas in Russia?
Absolutely, we call it “second bread”. An average Russian consumes 120-130 kilos of potatoes, with production amounting to about 31 million tonnes and imports to about 0.5 million tonnes. Consumer prices increased by 10 to 45% in early 2015, depending on the region; in Russia, production takes place in Bryansk, Tula, Moscow region, Nizhny Novgorod, Astrakhan, Sverdlovsk, Tyumen, Samara, Lipetsk, Tambov, Chuvash Republic, Kemerovo, Tver, the Republic Of Tatarstan, Udmurt Republic, Voronezh, etc.
For more information:
Embassy of the Russian Federation to the Kingdom of the Netherlands
Oleg Pugaev
Tel +31 70 346 8888
Mob +31 62 6496059
Fax +31 70 361 7960
Email opugaev@hotmail.com