Former Italian prime minister in favor of lifting sanctions

Fruit and vegetable prices decreased in Russia compared to one year ago. The country will probably use its capital reserves this month to close its budget deficit. Former Italian prime minister Prodi calls for lifting sanctions. Russian billionaires profit from boycott by investing millions in the development of farms and get the money to do so from the British stock exchange, among other places. Azerbaijan is an increasingly important supplier of fruits and vegetables to Russia. According to reports, Turkey and Russia are entering into talks about tension between the countries.

According to information of the Russian Central Bank, prices for fruits and vegetables decreased in March compared with February. Prices dropped with 1.3 per cent. Compared with March 2015, prices were 5.1 per cent lower. A number of factors are causing the pressure on prices. For example, more internal deals were closed, prices for farm products are under pressure globally and expectations for the coming season are good.

During the second quarter of this year, the Russian government might use its capital reserves to close its budget deficit, the Russian Central Bank wrote in a press release. This measure should also give financial institutions in the country more breathing room.

The Russian government has doubled tariffs for foreign lorries driving on Russian roads. A sticker for one year now costs 120,000 rubles (1,800 dollars), when formerly it was 60,000 rubles (900 dollars). A day sticker now costs 850 rubles (12 dollars) instead of the 385 rubles it cost earlier. Furthermore, the new tariffs will also apply to lorries from Lithuania and Latvia. These Baltic states have recently taken similar measures against Russian lorry drivers. 

According to former Italian prime minister Romano Prodi, lifting the sanctions against Russia will be more effective than maintaining the measure. The former prime minister said this during an interview with Italian newspaper Corriere della Sera. “The long-term relationship with Moscow is on the line. We need this for the future of Russia and Europe. Sanctions can be efficient when you impose them or when you lift them. Right now, lifting them will have a larger impact than extending them,” said Prodi. According to the Italian, Russia is needed to solve several international crises. In June the EU has to decide on the future of the sanctions. Traditionally, before that time messages crop up either supporting the sanctions or opposing them.

The Russian geopolitical situation, low oil prices and weak ruble are turning out well for some enormous farms. A large, listed company wants to build a pig farm and a greenhouse complex. The required capital is obtained from the British stock market. Earlier, a billionaire and friend of Putin invested in the cultivation of tomatoes and apples. Another billionaire wants to collect 250 million dollars to invest in the country’s self-sufficiency.

Of the CIS countries (Commonwealth of Independent States), Azerbaijan has taken a place in the top 3 of most important suppliers of farm produce to Russia. After Russia issued a boycott against Turkey, Azerbaijan quadrupled its export to Russia, media in the country report. According to economists, this situation presents an opportunity for Azerbaijan, where agriculture is an important part of the economy.

According to Turkish media, Russia has approached Turkey to talk about the boycott. Turkish exporters see this conversation as a ray of hope. “We regard this request as positive. Every month a new product was added to the boycott list. That is why this meeting is important. We pray that the relationship improves,” according to a spokesperson of the exporter’s cooperative. 

Logistics service provider XPO opened a new facility in St Petersburg last week. The cold store has 10,000 square meters.