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Thursday, December 8, 2016

Farmers called Medvedev Kremlin dreamer


The government has promised to determine the extension of bradenburg against the EU and the United States before the end of summer. Deputy Prime Minister Arkady Dvorkovich confirmed that the documents have been prepared. Earlier it became known that the Russian authorities do not plan to abstain from retaliatory measures to Western sanctions at least until the end of 2017.


photo: Gennady Cherkasov

As the main argument of the Prime Minister Dmitry Medvedev has called the desire to give the Russian agricultural producers a longer planning horizon for their investment. However, some experts believe that links in this case only on farmers, who fear the lifting of sanctions, is not quite correct. Polish apples have long made his way to Russian stores through neighbouring countries. Taken by the Russian authorities measures to support the domestic agricultural sector either substantially delayed or not effective.

According to the Deputy Chairman of the Federation Council Committee on agrarian and food policy Irina HECHT, the decision to extend Russia’s counter-sanctions policy more in connection with aggressive behavior of Western political circles. In her opinion, it is necessary to admit that sanctions war Russia retreated far back in the field of food security. A good example is the increase of nearly a quarter of purchases of palm oil. The Chairman of consumers Union of Russia Peter SHELISHCH gave the following data: after the imposition of sanctions 69% of Russians began to buy cheaper products, 63% of the population now rarely go to the store and often refuse certain products. “We cannot say that prices over this period rose faster than usual. Our prices have increased the past 25 years, but for the first time in so long and steadily. Substantially decreased the income of the population,” said Shelishch, adding that a new round of sanctions war will only continue to heat up food prices.

Deputy Chairman of the RF CCI Committee for the development of agriculture Pavel GRUDININ said that the Russian agriculture good life was under sanctions only from August to December 2014, until the ruble collapsed. Fallen behind him purchasing power has forced even countries that do not fall under the restrictions (China, Argentina, Chile etc), to drastically reduce the importation of their goods into Russia. Local farmers were hit no less painful. “On the one hand the government introduced changes to the rules of the subsidy given the sharp increase in the key rate of the Central Bank. The result has been to significantly reduce the cost of credit. But here it was more about the support of the banks than the farmers,” continues Grudinin. In his opinion, it is the lack of “real” money is one of the reasons why Russian manufacturers are unable to compete even with neighbors Belarus and Kazakhstan. “Instead of building, say, a giant sports facilities, the state should seriously invest in the domestic agricultural sector of economy”, – said the expert. Official figures on the increase in the volume of agricultural production, in his opinion, mean little, since there remain problems with the high cost of new tractors and other machinery. Russia’s dependence on foreign agricultural equipment still large, all cows in our country are milked with the use of imported machines.

At the same time, according to Pavel Grudinina, Dmitry Medvedev, explaining the extension of the Russian kontrsanktsy wishes of farmers, have shown their detachment from real life. “The Kremlin dreamers” need to understand that counter-sanctions do not work. In the country nothing is done in order for agriculture to become competitive. Moreover, constantly increasing rates of diesel, electricity and so on. By themselves on the counter-sanctions will cause Russia will be producing more,” Grudinin said.

If incomes fall, domestic production becomes uncompetitive. This is partly confirmed by the head of the National Union of milk producers Andrei DANILENKO. He recalled “MK”, when in 2014 the sanctions were imposed, freed 20% of cheese market. Russian steel producers to fill the gap. However, simultaneous with this trend has been different: due to the devaluation of the ruble increased the cost of the product and its selling price, while the purchasing power began to fall, and the demand for the cheese has begun to decline. Plus the Russian market began to actively enter the players from South America, and most actively increasing deliveries of the Belarus. “Our cheese makers definitely fear the lifting of sanctions and opening borders to cheaper dairy products in Europe. The price of raw materials in the world today are at a critically low level. The countries of Western Europe, New Zealand lost markets in Russia and partly China, are suffering losses. That is why in Europe now there are numerous protests of farmers, who need to take action and support the industry. A lot of milk, it is cheap, many farmers work at a loss. Our cheesemakers are afraid that in case of cancellation of embargo of cheap European dairy products will again occupy our shelves, and dear domestic cheeses will be in demand. The buyer in fact vote ruble”, – concluded Danilenko.

Sanctions . Chronicle of events

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