Kommersant: Russia to Side with Europe and China in Coming Global Trade War

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Economic Development Minister Maksim Oreshkin noted that Russia is likely to take part in the global trade war that’s gradually gaining momentum. Taking a cue from China and the EU, Russia will raise tariffs on imported US goods in response to Washington’s protective measures concerning steel and aluminium supplies. The tariff row is unlikely to fade away until the US Congress elections scheduled for November. Other countries announced tit-for-tat measures as well. China filed a WTO complaint and increased duties on US imports worth 3 billion USD (188.92 billion Roubles. 19.52 billion Renminbi. 203.6 billion INR. 3.99 billion CAD. 4.03 billion AUD. 2.57 billion Euros. 2.26 billion UK Pounds). The EU, Canada, and Mexico published their own lists of increased tariffs after Washington extended its steel and aluminium duties to them on 1 June. Sergei Afontsev, Head of the Economic Theory Department at the Institute of World Economy and International Relations, said:

According to WTO rules, the countries affected by unjustified trade restrictions have the right to take tit-for-tat measures without waiting for the results of their WTO complaints. Concerning US steel and aluminium tariffs, that’s what India did a few days ago; we expect a relevant EU decision. Russia will follow the global trend. If the USA is willing to begin a dialogue, the parties could discuss the mutual damage, but this could take two or three years. A trade war between the USA and China is a very real threat. To date, both parties seem to be willing to raise the stakes by increasing duties and extending them to new groups of goods. Where the limits of such escalation are, and whether they exist at all, is a big question. This is a fundamentally new situation in global trade.

20 June 2018

TASS

http://tass.com/pressreview/1010251

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Russia Dominates Global Wheat Market

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For the second year running, Russia is the world’s top wheat producer with exports of 22.5 million tonnes of grain this year, according to the US Department of Agriculture. Russia won contracts to exports 120,000 tonnes of wheat to Egypt. The Agriculture Ministry stated that in the autumn, as soon as the harvest brings in a new crop, Russia would supply wheat to China. Russia’s leading position in the global wheat market is because of its low-price strategy, which increased its market share.

The weakened national currency and favourable weather, as well as more investment, pushed forward Russian agriculture and unseated the USA as the world’s biggest wheat exporter. The Black Sea region, including the Ukraine and Romania, traditionally takes the lead at the start of the season with French exports catching up later. However, this year, France is out of the league of top wheat sellers after heavy flooding waterlogged fields and increased concerns over grain quality. According to German agriculture consultant BayWa, the soggy fields reduced crops by 17 percent (to 34 million tonnes) this season.

Matt Ammermann, a commodity risk manager at US-based financial services firm FCStone told Bloomberg, “The Black Sea just has so much to sell now and the quality is coming out better than expected. Traders aren’t even willing to look at French wheat after the harvest delays”. As of Friday, the Moscow-based Institute for Agricultural Market Studies said that wheat at Black Sea ports sold for 165 USD (10,550 Roubles. 1,100 Renminbi. 11,100 INR. 215 CAD. 220 AUD. 150 Euros. 125 UK Pounds)/tonne according to. That’s at least 15 USD (960 Roubles. 100 Renminbi. 1,000 INR. 19.50 CAD. 20 AUD. 13.60 Euros. 11.35 UK Pounds) cheaper than French wheat. Kiev-based UkrAgroConsult believed that Russia should gain nearly 16 percent of the global market this year compared to 14.4 percent a year ago. France’s share would reportedly decline to 11 percent from 12.1 percent last season. Sergei Feofilov, the head of UkrAgroConsult, told Bloomberg, “Russia’s position in the wheat market is changing because Russian farmers received high margins from selling their grain crop of last year, which they used to invest in better farming and technology”. Experts are positive on Russian wheat production through 2020, citing the weak rouble over the period. Alexandre Andrey, an analyst at BMI Research, told Bloomberg, “Thus, Russia would be in a prime position to compete on volume and price against France, Romania, and the Ukraine”.

20 July 2016

RT

https://www.rt.com/business/352272-russia-lead-wheat-market/

Will the Ukraine Get Coal for Christmas? Maybe Not, in Wake of Crimean Blackout

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On Tuesday, Energy Minister A V Novak said that Russia might respond to Kiev creating a blackout on the Crimean Peninsula by halting coal deliveries to the Ukraine, saying on Vesti-FM radio, “Maybe in this case we need to make a similar decision on halting the deliveries of coal by our commercial enterprises that deliver coal to Ukrainian electrical stations”. The Crimean blackout began on Sunday, after Ukrainian extremists blew up powerline pylons on the Ukrainian side of the border. Thus far, Ukrainian utility crews can’t repair the pylons, as extremists occupy the site and deny access to local police.

24 November 2015

Sputnik International

http://sputniknews.com/world/20151124/1030637346/russia-ukraine-coal.html

Export of Medicines from Russia to Novorossiya in the First Half of 2015 Increased Almost 200 Times

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Deputy Chairman of the DNR Union of Businessmen Aleksandr Polivyanov-Konotop stated that export of pharmaceuticals from Russia to Novorossiya grew almost 200 times in the first half of 2015:

In the first half of 2015, Russia sharply increased its commercial supply of drugs to DNR and LNR, from 3 million Roubles (293,000 Renminbi. 3.015 million INR. 46,000 USD. 61,200 CAD. 65,300 AUD. 41,400 Euros. 30,500 UK Pounds) to 590 million Roubles (57.6 million Renminbi. 592.8 million INR. 9.07 million USD. 12.07 million CAD. 12.87 million AUD. 8.13 million Euros. 6 million UK Pounds). Major Russian pharmaceutical companies reduced their trade with the DNR, but regional producers replaced them. The biggest Russian suppliers reduced their deliveries to the DNR and the LNR for fear of sanctions. In contrast, small suppliers in Rostov Oblast increased their deliveries. In all, they cover more than 75 percent of the market. Because of the Ukrainian blockade, Russia remains the only supplier of drugs.

Maxim Leshchenko, Head of Administration for the DNR Chairman of the Government, pointed up:

Local producers could contribute as well. The Republic has a great potential to produce medicines. A company with operations in Donetsk and Gorlovka could soon take over a significant share of the pharmaceutical products market.

28 September 2015

DAN Donetsk News Agency

http://dan-news.info/russia/eksport-lekarstv-iz-rf-v-donbass-vyros-v-pervom-polugodii-pochti-v-200-raz-soyuz-predprinimatelej.html