Russia finds no alternative for Conference

Russian importers are having problems finding alternatives for the Dutch and Belgian Conference pears. For apples, other partners have been found, but this is turning out to be a lot more difficult for pears. Investors are pinning their hopes on Russian supermarket Magnit. Magnit’s discount formula is expected to profit from the tough economic circumstances. For the coming year, the expectations for the Russian economy aren’t very good either. 17% inflation is being reckoned with. And according to estimates, Putin is the richest individual on earth, with an estimated capital of 200 billion dollars. Whether the Russian president actually has this capital at his disposal, cannot be proved.

If all parties will adhere to the agreements made in Minsk, the sanctions against Russia could be relaxed, German politician Philipp Lerchenfeld reportedly told Russian media. So far, the ceasefire appears to be ineffective. There are still reports of fighting around the city of Debaltseve, where the separatists appear to have the upper hand, and the withdrawal of heavy weaponry also hasn’t been initiated yet.

New pear suppliers hard to find
Where Russian importers were able to redirect the apple import to domestic produce and import from Serbia, China, Chile and Argentina, that turns out to be more difficult for pears. Some importers have even stopped offering pears altogether. The EU accounted for around 70% of the Russian pear import, with the Conference from the Netherlands and Belgium doing particularly well in winter and spring. The importers aren’t succeeding in finding alternatives for these pears.

Sverdlovsk invests in seedlings
The Sverdlovsk region reports investing over 79 million dollars in the development of agriculture. Potato cultivation is an important destination for the funds. The region wants to become less dependent on the import of seedlings. Russian companies import 95% of their seed potatoes, a percentage that needs to come down.

Tough year for Russia
The Russians are again facing a tough year in 2015. The government reckons with an inflation that could go up to 17%, a percentage that hadn’t been seen since 2002. Consumer confidence fell to a low in the last quarter of 2014. The government support measures are mainly focused at industry, while the sectors that are hit hardest by the economic decline are trade, construction and service provision.

Magnit safe haven
Investors expect Magnit’s discount concept to have a better position than competing supermarkets. The supermarket’s share price went up by 20% last week. With the lacklustre economic prospects, investors are expecting the discounter formula to attract more consumers.

Putin richest on earth?
Although his exact capital is unknown, Bill Browder, CEO of Hermitage Capital Management, made an estimation of Putin’s capital for CNN. He estimates the Russian president’s capital to be 200 billion dollars, which means Putin would immediately take the top spot. The official ranking is headed by Bill Gates, with a capital of 79 billion dollars. Putin is said to have acquired this capital through activities that include embezzling government funds.