Europe must make further efforts to gain access to the Russian market, Copa-Cogeca says. The Italian region of Veneto also opposes sanctions. Wealthy Russians invest in agricultural projects. The number of banks in Russia has decreased in the last two years.
Copa-Cogeca: access Russian market priority
Copa-Cogeca calls for the European Commission to keep working to put an end to the boycott and to open the Russian market for agricultural products. Especially the meat and fresh produce sector are taking large losses. The organised interest group thinks Europe should make it a priority to gain access to Russia again. In addition, benefit funds should be used and distributed.
Italian region opposes sanctions
The Italian region of Veneto opposes the sanctions and is in favour of recognising the new status of Crimea, a vote on Wednesday showed. Although the vote will not have any further impact, it does represent the position of an important region. “The Italian government must insist that the sanctions are lifted immediately and that economic ties are restored,” according to the initiator.
Wealthy Russians invest in agriculture
More and more incredibly wealthy Russians are investing in agriculture. For example, the 22 year old son of tycoon Roman Abramovich (accounting for 7.6 billion dollar) has plans to invest millions in 200 hectares of greenhouse cultivation in Rostov. The investment is 3 to 4 million dollars per hectare. No signatures have been placed yet, but the plans are still on the table.
The son of public prosecutor Yury Chaika is also investing in agriculture. He wants to start a company for vegetable cultivation. Besides the cultivation, the company also has to take care of its own sales.
The family of the Minister of Agriculture, Alexander Tkachyov, is also investing. A dairy cattle company has to be started with 29.2 million dollars. And the owner of tobacco distributor Megapolis is planting an apple orchard of 600 hectares. The plan has to be executed within the next three years.
Banks are leaving Russia
During the last two years of the crisis 27 per cent of the banks have disappeared from the Russian market. Primarily medium-sized banks were hit hard. According to analysts the number of banks has declined from 922 in 2014 to 697 this month. The crisis affects the entire banking sector, large banks were also on the brink of bankruptcy in recent months.
Russia does not want a complete Turkish boycott
According to Russian media Russia is not striving after a complete boycott of Turkish products. The head of the phytosanitary inspectorate is rumoured to have said this. “It is our job to ensure that the rules are observed. They cooperate, so we continue to cooperate. We do not boycott all import.” Though that does not guarantee that there will not be an extension of the boycott, Russia has already extended the list of boycotted Turkish products a number of times in recent months.
Export Azerbaijan to Russia increased fivefold
Russia is one of the most important markets for agricultural products, said the State Secretary of Agriculture of Azerbaijan. The relationship between the countries is improving, Russia is exporting machines too and importing fruit and vegetables from Azerbaijan. Since the boycott of Turkish tomatoes, Azerbaijan has captured a position in the top three of largest tomato exporters to Russia. According to the State Secretary, export increased fivefold. Russia and Azerbaijan are also increasingly cooperating in other sectors.
Russia wants to cooperate with Asia
Russia had talks with several Asian countries recently. Vietnam and the Philippines want to strengthen economic ties with the country. A conference between ASEAN and Russia also took place this week. The ASEAN is the Association of Southeast Asian Nations. On the agenda was, among other things, a further cooperation.