President Putin decided to intervene in the Greek crisis. The president called the Greek Prime Minister, the French President and the IMF. In Russia, analysts are concerned about the consequences for Russia of the Greek 'no'. The Russian envoy in Europe said in an interview that European companies still try to circumvent the boycott, although import statistics don't show it. Central Russia is affected by drought. The consequences for the harvests are still unclear. In Krasnodar, where apple harvest has just started, the drought has had no impact. The Saudis are investing $ 10 billion in Russia.
Russia intervenes in Greek crisis
President Putin has openly intervened in the Greek crisis. There are several reports of conversations between the president and various parties. According to the Kremlin, President Putin had a meeting with IMF head Christine Lagarde about the consequences of the Greek referendum. The conversation dealt with "Russian and IMF cooperation within the framework of the Greek referendum."
The Russian President also called Greek Prime Minister Tsipras to address the outcome of the referendum. Lastly, there was also a call between Moscow and Paris. President Hollande had a conversation with his Russian counterpart about the outcome of the referendum.
Impact of Greek 'no' to Russia
Not only the EU is taking stock of the situation after the Greek 'no', even Russia is looking at the possible consequences. The main concerns have primarily to do with the consequences for the world economy and trade relations with the EU. Although there are economists who argue that the world economy has already adapted to the Greek crisis, others see more potential problems.
The consequences for the EU will also eventually affect Russian companies. Oil prices may fall and international investment in emerging economies, including Russia, is under pressure from both the Greek crisis and fluctuations in the global economy.
But from the Russian perspective there is also a potential positive effect, say analysts. Russia would have a stronger position in its negotiations with the EU about the sanctions. For investors, Russia is a good alternative to Greece, according to experts.
According to the Russian Central Bank, the country's financial sector is not threatened by the Greek crisis. The country would reportedly possess around $ 14 million in Greek government bonds, and investment in the Greek private sector is also limited.
Saudi Arabia invests in Russia
Over the next four to five years, Saudi Arabia's Public Investment Fund will invest $ 10 billion in Russian infrastructure and agriculture. The oil-rich state is working with the Russian Direct Investment Fund. This year, investments should go to ten projects.
Russia: Europe continues to smuggle
The Russian ambassador in Europe, Vladimir Chizov, said in an interview with Russian media that European countries continue to look for loopholes in the boycott. While imports from the EU dropped as a result of the trade restriction, they have not come to a complete standstill. Hard figures on how many and which products still find their way to the Russian market are not available; however, the Russian envoy points to the remarkably increased supply of lactose-free milk from the EU.
Russia hit by drought
Central Russia is suffering the impact of drought. Different regions are registering a shortage of rainfall, including Belgorod, Voronezh, Kursk, Lipetsk, Tambov, Orenburg, Penza, Samara, Saratov, Ulyanovsk, Tatarstan, Bashkortostan, Mordovia, Chuvashia, Volgograd and Rostov, Kalmykia and the northeast of the Stavropol Territory. According to Russian sources, the grain harvest is not threatened. The consequences for other crops, however, are unclear. Rain is expected in some regions, but not enough to cover the needs of agricultural producers.
Largest storage facility opens in Russia
Europe's largest storage facility for fruit and vegetables will open this summer in the region of Kabardino-Balkaria. According to its director, it will have a capacity for 75,000 tonnes of produce. The company grows carrots, potatoes, onions, beets and cabbage in the north Caucasus. In 2011, the firm started investing in storage facilities and has future plans to build another facility to increase the storage capacity by another 12,500 tonnes.
Start of apple harvest in Krasnodar
The apple harvest has kicked off in the Russian region of Krasnodar. The early varieties Geneva and Luch will be the first to be available at prices ranging from 40 to 55 Rouble (0.72 to 0.99 dollars) per kilo. The season started a week later than last year. Prices are on average 30% higher than in 2014, although expressed in dollars they are in fact 20% cheaper.