Last week a large delegation led by President Erdogan visited Russia. Expectations for these negotiations was related to the economy, but in the first place was security and policy. The day before that meeting, Prime Minister Medvedev announced the cancellation of the embargo imposed on “some” types of Turkish food. The resolution has been specified goods, which Turkey is not so many merchandises, such as onions, shallots, cauliflower, broccoli, salt, carnation flowers, chewing gum. And expectations of Turkish farmers concerned fresh fruit and vegetables, i.e. tomatoes, cucumbers…
Yesterday the Russian side announced the reason for this limited “easing”. The Minister of agriculture of Russia Alexander Tkachev said that Russia has allowed import of only those vegetables and fruits that are not produced or not enough is produced in the country. Tkachev said that tomatoes and cucumbers Russia needs to grow itself, and that the products that will come from Turkey should not have a negative impact on the Russian market. The Russian media question “how long will operate a fruit and vegetable embargo against Turkey,” Tkachev said: “This is a political issue.”
Six products in our industrial production
This “limited” mitigation did not satisfy the Turkish side and even disappointing. Yesterday it became known about the decision, which, according to some reviews, was made under the influence of these events in response. Turkey suspended imports of six major agricultural products of Russia. This information I found out during a visit of the head of the Istanbul Union of exporters of cereals, legumes, oilseeds products Sekirei mete (Mete Zekerya). The purpose of our visit to him with Kaffara Kenan (Kenan Kaffar), head of the company “5N1PR” working with the press for the Union, was to know the current situation of the Turkish exporters, as suddenly we fell on the news. Meta after long telephone conversations talking with officials about how the members of the Union can overcome this obstacle. “Came the ban on the purchase of corn, wheat, crude sunflower oil, sunflower meal, peas and rice,” he said.
As I found out, the ban applies to imports under the customs procedure of inward processing. For this reason, ships idle in ports. Official statements about the details of the ban was not done. From the list of the Ministry of agriculture, specifying the countries from which the import of wheat, Russia has been quietly removed. For some time now, was said about the fact that Russian wheat, and some legumes are the foods to eat fungus, the Ministry asked to take action. The Ministry allowed a controlled import.
Possible price increase
The total cost of the products that we buy from Russia — about $ 1.3 billion.
But the products, purchased from Russia, the most important fresh vegetables and fruits. As the price of many products, from bread to pastries that you buy at the store may soon rise. According to the information I received to these six types of products can be added, and new.
The court can’t unload
Zekeria, meta said that these products are focused on industrial production and noted: “Russia is one of our major suppliers of wheat. This will have a negative impact on Turkish producers. Would be better if it happened gradually. Now ships can’t unload their products. Now for the purchase of flour will look for alternative countries. It’s not the products that we have available. Sunflower oil, glucose and sugar-containing products, confectioners are forced to focus on other regions. Buy those products of the company, which provides jobs. If the embargo against Russia to continue, our producers, especially in the field of transportation, will be even harder. The competitiveness of Turkish manufacturers will weaken. Costs will increase”.
What will be the impact of the embargo against Russia?
To explain it should be in numbers. Turkey is the world sells fresh vegetables and fruits in the amount of $ 1.9 billion. The most important market is Russia… In 2015, exports of fresh fruits and vegetables in Russia amounted to 875 million dollars. More than three times in comparison with Iraq, which is the second in this list. With the introduction in 2016 bans, this figure has decreased by 62%, falling to 331 million dollars.
Now about the products that we buy from Russia In 2016, the Turkey got sunflower oil in the amount of 963 million dollars. The share of Russia, which is in the first place, which is 720 million dollars. Corn total figures — $ 128 million. The share of Russia, which again in the first place, — $ 76 million. Our total imports of wheat — 892 million dollars. Russia is in first place with a share of 55%, we buy at $ 490 million.
