In an extensive interview with the German newspaper Bild Putin went into detail about various developments. He called the sanctions the West placed after the annexing of the Crimea "stupid and damaging". Putin also stated that the Iron Curtain hasn't been brought down, but moved east. The decreasing oil price has consequences for the Russian budget. Ukraine is shooting itself in the foot with the boycott on Russian products, Armenia sees too much potential in Russia and Spain is compensation for the loss of Russia with export outside of Europe. Serbia wants to extend the trade with Russia further. In Iran, measures are being taken to prevent Turkish products being disguised as Iranian products from crossing the Russia border.
Sanctions after Crimea annex: "stupid and damaging"
In an interview with the German newspaper Bild, president Putin called the decision to sanction Russia after the Crimea annex "stupid and damaging". According to the Russians it is not an annexation, but a reunification. He points to the referendum in which a majority of the inhabitants of the Crimea choice to join Russia in this instance. He compares it to Kosovo, of which the independence is recognised, but for which no referendum was held among the population. The president said of the consequences of the sanctions: "the biggest damage in the current situation is being done to our economy and the price reduction in our traditional export products." According to the president the sanctions have also had positive results for Russia.
Germany sees perspective in Normandy format
German Chancellor Merkel believes progress can be made in the negotiations between France, Germany, Russia and the Ukraine within the 'Normandy Format'. Within this format progress has to be made in the next few months on the crisis in the Ukraine. "I believe we can make progress with the Normandy negotiations between Russia and the Ukraine over the next few months. I am optimistic," said the German Chancellor. The name refers to the talks during the remembrance of D-Day in Normandy two years ago. Russia is prepared to negotiate based on "mutual respect and international treaties".
Putin: "The Wall hasn't been demolished, it has been moved"
The old conflict between the East and the West during the Cold War hasn't ended yet, the border has just been moved. This was said by the Russian president in an interview with Bild. The fall of the Berlin Wall was not the end of the conflict, just a shifting of its border, he believes. Putin says not all of Europe was united. Russia also failed to protect its national interests in the first years. Russia wants to build up the relationships with other countries based on mutual respect for views and interests.
Russian oil prices halved
The average price for oil from Russia almost halved last year, said the minister of Finance. In 2014 the average prices was at 97.60 dollars a barrel, last year it was 51.23 dollars per barrel. A decrease of 47.5 percent. In December the barrels were going for 36.42 dollars, a months before it was 42.11 dollars. In the budget for this year the Russian government is taking into account an oil price around 50 dollars per barrel. With a price around 40 dollars per barrel the deficit would be 19.8 billion dollars. This week the price on the global market decreased to 32.83 dollars per barrel.
The Ukraine shooting itself in the foot
The Ukrainian embargo on Russian products, placed by the country after Russia closed its borders to Ukrainian products earlier this month may be like the country shooting itself in the foot. According to experts Russia is a much more important market for Ukrainian exporters than the other way around. They point out that a few years ago 25% of the Ukrainian export went to Russia. On the other hand, the Ukraine had a market share of five percent in the export from Russia.
Armenia encourages potato cultivation
Armenian farmers are being advised to plant potatoes this year. According to the national branch organisation there will mainly be a large demand for the early potatoes from Russia, partially because Russia has closed its borders to Turkey. The organisation guarantees that the Russian market is open between May and July 20 for potatoes from Armenia. Other countries are also trying to get in on this, such as Pakistan, Egypt, Israel and China.
Russian inspection visits Serbia
On January 11 and 12 the head of the Russian phytosanitary service Sergey Dankvert will visit Serbia. During his visit talks on collaboration between the countries are planned. According to the Serbian prime minister Aleksander Vucic the country can further expand the export to Russia. Last year the country was already exporting more than twice as much to Russia than before.
Rusland destroys Turkish mandarins
The Russian inspection has destroyed 225 kilos of mandarins of Turkish origin. During an inspection the controllers found the mandarins in a store in Stavropol. The citrus had been imported on January 5th and was therefore illegal. A bulldozer destroyed the mandarins.
Iran takes measures against smuggling
Teheran is taking measures to prevent Turkish products being shipped into Russia as Iranian product. The Iranian inspection will keep the Russian phytosanitary service up to date on shipments and verify documents Russia sends on request. Russia approached Iran to set up a system to prevent smuggling.
Spain compensates for Russian loss
The Spanish export to the EU increased by an average 5 to 6 percent in 2015. According to the export federation there is a record harvest of 13 million tonnes. The turnover came to 13 billion Euro last year, an increase of 10 percent. The loss of the Russian market, worth 7 percent of the export before the embargo, was compensated by the increased export to EU countries. The EU is worth around 90% of the export. Within the EU the demand increased mainly from Germany, the United Kingdom and France. At a product level tomatoes, peppers and stonefruit are at the top of the list. The soft fruit assortment experienced a strong growth.
Ukrainian inflation at a peak
The inflation in the Ukraine reached a twenty year peak with an average inflation of 43.3 percent. With a price increase of 70 percent, vegetables had the highest difference compared to 2014.