When there's a will there's a way

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When there's a will there's a way

Speculation is mounting that fruit banned by Russia in response to economic sanctions is still making its way to the supermarket shelves of Kaliningrad, Moscow and St Petersburg.

If true, such trade would take the weight off 700,000 metric tons (MT) of Polish apples without a home, just to name one key EU product banned by the world's largest country. According to figures from European produce association Freshfel, the European community exports €1.8 billion (US$2.4 billion) worth of fruits and vegetables to Russia each year.

To read more stories on the Russian ban, click here.

Polish news site Natemat.pl has reported some growers have been sending their apples in unmarked boxes to neighboring Belarus, whose president Alexander Lukashenko recently promised he would not allow the transit of prohibited goods into Russia.

While some EU fruit is allegedly still making its way to Russia, scenes like these can still be seen in the country's retailers. Photo: Afrucat.

While some EU fruit is allegedly still making its way to Russia, scenes like these can still be seen in the country's retailers. Photo: Afrucat.

The Natemat.pl story reported the fruit was then repacked and could be found in Russian supermarkets within a few days.

One source told the publication the industry had sought 'unofficial zones' since the announcement of Russia's ban on Polish produce items, which preceded the pan-EU embargo. For some growers, this situation has reportedly made business even more profitable.

The story reported that during the Russian ban on Polish apples in 2005-07, countries such as Lithuania, Belarus and the Ukraine became gray channels for the fruit, and that some exporters had dealt with the Moldovan mafia as well.

The source added that contrary to reports from Russian officials, the replacement of Poland's fruit and vegetable supply would not be easy.

The story said one trader had reported similar practices for Spanish peaches re-exported from Belarus.

In the immediate wake of the ban, Russian President Vladimir Putin spoke with Lukaschenko and Kazakhstan's Nursultan Nazarbayev to discuss the formation of a Eurasian Economic Union (EEU) and the potential for sourcing more food products from the two countries.

The focus now has shifted however, as recent telephone conversations took place with the two leaders included "coordinating measures to prevent unauthorised supplies to Russia via Kazakhstan and Belarus of goods from countries that have come under recent Russian Government sanctions", according to the Kremlin.

Many shelves still empty

Regardless of any alleged informal market activity, Catalan growers' association Afrucat has reported a "surreal" situation in the Russian market where supplies of nectarines and peaches are in decline.

A release from the association said Russia would be lacking 70 million kilograms (154 million pounds) of Catalan fruit that would have been sent over the next two months, which instead has to find buyers elsewhere.

"Everything that leaves our facilities for under €0.65 (US$0.87) [per kilogram] represents a loss for the fruit grower," said Afrucat director general Manel Simon, whose association added that Central European operators were offering prices of €0.40 (US$0.53) as a result of oversupply in the market.

Who is suffering the most from Russia's food product import ban

While our coverage has naturally focused on the fruit and vegetable industries, a range of farms and fisheries have been hit hard by Russia's sanctions.

Data compiled by Statista.com shows Poland is the most affected country with US$1.117 billion worth of food exports blocked, followed by Norway with US$1.1 billion, mainly from seafood.

Infographic: The Countries Hardest Hit By Russia's Trade Ban | Statista

You will find more statistics at Statista

www.freshfruitportal.com

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