The Ukrainian government is responding strongly to the announced boycott by Russia and the proposal to restructure the debt. According to Kiev, Russia will be given tit for tat if a boycott is announced. Moscow must also settle the payment arrangement the same as other debt collectors. The EU announced they would offer the Ukraine no compensation if a boycott is enforced in January. Azerbaijan will likely profit from a boycott of Ukraine. Besides more potential for export, the country is a transit haven for Iranian product. Kazakhstan is also profiting from the boycott and has grown into a large supplier of fruits and vegetables in Moscow.
Ukraine boycott positive for Azerbaijan
The opportunities for Azerbaijan on the Russian market will increase if Russia does close its borders to Ukrainian products in January. There are also opportunities in Russia for Turkey and Iran. The flow through of Iranian production would be positive for the Azerbaijan economy. The country can also increase the export of boycotted products.
Kazakhstan making money from boycott
The Central Asian country has grown to an important supplier of fruits and vegetables to the Russian capital Moscow. Kazakhstan has a share of twenty percent in the supply of products from the CIS countries. The head of the Ministry of Trade and Services told the Russian newspaper Vechernyaya Moskva about the collaboration with Kazachstan. Food City in Moscow is the largest buyer of Kazakh products. The centre received around 20,000 tonnes of potatoes and vegetables and 500 tonnes of fruit. Although the Moscow market still has a lot of potential for Kazakhstan, there are also a number of challenges. The most important challenge is the exchange rate. The transport time to Moscow is also a costly undertaking. The five day journey costs around 3000 to 5000 Euro.
Belgian minister wants to ramp up pressure on Ukraine
The Belgian minister of Foreign Affairs wants to put pressure on the Ukraine to step up the decentralisation and the fight against corruption. This was said by the minister during a discussion with his colleagues from other Benelux countries. Besides this the minister advocates pressure on Russia to control the cease fire and carry out the Minsk accords.
Ukraine turns down Russian payment proposal
The Ukrainian prime minister has declined the payment proposal made by Russia last week. The Ukraine has a debt of three billion euros to Russia, officially this debt has to be paid before the end of the year. Last week the Kremlin proposed redeeming a portion of the amount and turn the rest into debt, with a guarantee by a credit worthy party. Kiev, however, rejected the proposal and says that Russia must accept the same conditions as the other creditors. This comes down to a twenty percent amortisation of the debt, a four year extension and increasing the interest to an average of 7.75 percent. The boycott can still be avoided, as long as the EU and the Ukraine can limit the economic risks for Russia before the first of January.
"Giving Russia tit for tat"
Th Ukrainian prime minister Yatsenyuk said in a press conference that Russia will be paid back tit for tat if the boycott is enforced in January. The ministries of Economics, Finance and Foreign Affairs will have to think of counter action along with the tax service and customs.
EU offers no compensation for the Ukraine
If Russia does close its borders to Ukrainian export next year, the EU is not prepared to offer compensation. According to Johannes Hahn, commissioner for Neighbourhood Policy and Enlargement Negotiations, recently argued that a response from the free trade agreement was to be expected. He believes the Ukraine has had more than enough time to anticipate the drop out of the Russian market.
Singapore and Russia start negotiating free trade zone
Russia and Singapore recently started negotiations on a free trade zone, reports Fruit-Inform. The prime minister of the Asian state let press know that despite the economic downturn the country is interested in collaborating with Russia.
Siberian grower experiments with exotics
Although the temperatures in Siberia stand out in extremes, hot summers and cold winters, growers are experimenting with the cultivation of exotics and tropical products. Mandarins, lemons, pomegranates and bananas are grown in greenhouses. A grower says that the seeds were bought online. The biggest challenge is keeping the roots of the plants warm. He has therefore constructed a heating system in his greenhouse.