Russian ban worries Bosnia’s fruit producers

(CC0 pixabay)

Indonesia interested in Ukrainian turbines for generating electricity

For the first time Hungary has a trade surplus 

It’s been a good year for Bulgarian farmers

Bosnia and Herzegovina

After Russia introduced a temporary ban on imports of fruit and vegetables from Bosnia, Bosnian producers face major losses. Bosnia exports to Russia include apples, pears, grapes, cabbages and tomatoes. Balkan Insight reminds that in July 2016, Russian experts from the Center for the Development of Entrepreneurship in St Petersburg had warned that export certificates for the EU market are not valid for Russia. Rosselkhoznadzor, the Russian Veterinary and Plant Health Inspection service, said it imposed the ban because of concerns about safety.

“This limitation was introduced because of the lack of information on the plant health status of Bosnia and Herzegovina and because the [Bosnian] Ministry of Foreign Trade refused to accept a mission of inspection from Rosselkhoznadzor which should have conducted a survey of the Bosnian control system on plant health,” the institution writes in its press release.

Barely 2 years ago Bosnia started exporting massively to the Russia taking advantage of the sanctions introduced by the EU against Moscow in 2014 in connection with Ukraine. According to the Bosnian Chamber of Foreign trade the value of exports increased from EUR3m in 2014 to EUR11.8m in 2015.

“If the blockade remains in force in the following months, this will do incredible damage to our producers (…) This is a crucial period, as the farmers are starting the harvest,” Balkan Insight quotes Dragoja Dojcinovic, President of the Association of Fruit Producers of Republika Srpska, Bosnia’s Serb-dominated entity.

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Ukraine

The Interfax informs Indonesia would like to commission power generating equipment from Ukrainian suppliers. The agency quotes Joko Widodo speaking: “We have considered the issue of cooperation of Indonesia with Ukraine in the areas of the manufacture of turbines for power generation”. Indonesian President dealt with the question of the turbines during the meeting with Ukrainian President Petro Poroshenko on August 5th. Petro Poroshenko visited Malaysia and Indonesia last week.

“Ukraine is a strong producer and reliable supplier of energy equipment to over 40 countries. We see active participation of Ukraine in the implementation of ’35 Thousand Megawatts’ project initiated by Mr. President [Joko Widodo],” Poroshenko commented.

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Hungary

Hungary posted EUR1.129bn worth of foreign trade surplus in June 2016. “It is unclear, though, whether this is good news from a growth perspective or not,” Portfolio.hu comments. “The surplus of over EUR1.1bn is 10 per cent larger than the second-biggest surplus. The Central Statistical Office (KSH) reported EUR1.01bn surplus last March, and the surplus had never before or since exceeded the EUR1bn mark until now. Surplus in the first half reached EUR5.3bn, which is also an all-time high.”

The portal explains there are two reasons for generating surplus: Hungarian exports grew by 5 per cent y/y in June 2016, and stagnation in imports (“the key factor behind this is the fall in energy prices, particularly the lower oil bill. A barrel of crude cost more than USD70 in the middle of 2015, whereas we are down at USD50 now). The huge trade surplus should boost the current account surplus and reduce the national economy debt.

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Bulgaria

It’s been a good year for Bulgarian farmers. As Novinite.com reports, Bulgaria’s wheat crop grew by 15.6 per cent y/y in 2016 through July 31, reaching 5.18 m tons. According to the Agriculture Ministry this is due to both higher yields and increased acreage of wheat. The average yield was 4.79 tons per hectare in 2016. Bulgaria had in stock 526,694 tons of wheat from previous years as of end-July.

Total wheat consumption in 2016 through end-July was 344,042 tons. Of these, 123,000 tons were domestic consumption and 221,042 tons were exported. Regarding exports, the average export price in 2016 through end-July was about EUR153 per ton. The directions of exports are: Middle East and Greece, Yemen, Somalia, Ethiopia and the Philippines

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What’s up in indexes

BUX (of Budapest) dropped by 0.95 per cent – falling from 27574.38 index points Thursday, August 4th to 27311.45 index points Friday, August 5th. From year-end it’s up 14.18 per cent.

BET (of Bucharest Stock Exchange) increased from 6707.50 index points Thursday, August 4th to 6752.01 index points Friday, August 5th. So it grew by 0.66 per cent d/d. From year-end it dropped by 3.60 per cent.

PX (of Prague Stock Exchange) dropped by 0.74 per cent – falling from 856.10 index points Thursday, August 4th to 849.79 index points Friday, August 5th. From year-end it dropped by 11.14 per cent.

WIG20 (of Warsaw) was up 0.29 per cent – increasing from 1820.24 index points Thursday, August 4th to 1825.45 index points Friday, August 5th. From year-end it dropped by 1.81 per cent.

OMXT (of Tallinn) was up 0.53 per cent d/d and up 13.06 per cent from year-end. It increased from 1011.08 index points Thursday, August 4th to 1016.42 index points Friday, August 5th.

OMXR (of Riga) decreased from 630.95 index points Thursday, August 4th to 630.48 index points Friday, August 5th. So it dropped by 0.07 per cent d/d. From year-end it’s up 6.08 per cent.

OMXV (of Vilnius) dropped by 0.71 per cent d/d, falling from 541.58 index points Thursday, August 4th to 537.71 index points Friday, August 5th. From year-end it’s up 10.64 per cent.

SAX (of Bratislava) increased from 308.28 index points Thursday, August 4th to 315.47 index points Friday, August 5th. So it’s up 2.33 per cent d/d. From year-end it’s up 7.91 per cent.

SOFIX (of Sofia) increased from 458.13 index points Thursday, August 4th to 458.76 index points Friday, August 5th. So it’s up 0.14 per cent d/d. From year-end it dropped by 0.46 per cent.

UX (of Kyiv) increased from 696.34 index points Thursday, August 4th to 700.61 index points Friday, August 5th. So it’s up 0.61 per cent d/d and by 2.15 per cent from year-end.

The bourse of Zagreb was closed Friday, August 5th. CROBEX closed at 1770.25 index points Thursday, August 4th. From year-end it’s up 4.77 per cent.

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