Turkey announced duties on Russian products

Turkey announced duties on Russian products

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For wheat and maize they make up 130%, for legumes 9.7%, the


Photo: REUTERS/Eduard Korniyenko

The Ministry of agriculture received the official information about the introduction of Turkey in the import duties on Russian products. It turned out that the duty of 130% set only for wheat and maize, and, for example, for sunflower oil, it is 36%, but there are additional restrictions. The taxes are also imposed on the import of legumes, as previously reported. Russian officials and businessmen are already looking for new markets in Asia, Latin America and Africa. The experience of recent years, domestic producers could increase exports of agricultural products, despite a decrease in deliveries to Turkey.

As have informed “news” in the Ministry of agriculture on March 15 of this year, import duties on wheat and maize in the Republic of Turkey is 130%, rice 45%, sunflower oil — 36%, sunflower — 13,5%, pulses of 9.7%. To import sunflower oil in addition to duties in 36% there are other restrictions — the minimum customs value of products supplied should be $1500 per ton. The Ministry of agriculture noted that it is “impossible at the current price of $800 per ton.”

The Ministry of agriculture and rural Affairs of Turkey has refrained from detailed comments.

— What further plans of the Ministry any statements do not intend, — said the Agency “news”.

Prohibitive duties

The Turkish government has imposed duties on specified Russian products from 15 March this year.

The Ministry of agriculture announced that because of problems with Turkey “significant efforts aimed at increasing export supply of grains and the promotion of grain to new promising markets.” Generally, the office expects to increase deliveries to the Asia-Pacific region. This applies to both wheat and sunflower oil. Also among the potential markets — Latin America and Africa.

According to the Director of development Association of manufacturers and suppliers of food products “Rusprodsoyuz” Dmitry Vostrikova, Turkish duties in relation to almost all of these products are prohibitive.

A possible exception applies only to the sunflower and legumes, but, obviously, supplies will be significantly less profitable, — said Dmitry Vostrikov.

Delivery grow, in spite of Turkey

According to the Federal customs service (FCS), the Turkey for at least three years is reducing purchases of Russian wheat, corn oil and sunflower meal, rice and beans, which are now subject to tax. Despite the decline of Turkish imports, Russia still increased its shipments of these products abroad.

Export of Russian wheat last year was a record, according to the TCF (statistics provided as of 2014). Delivery was 25.3 million tons — 20% more than in 2015. the Amount of supply at the end of last year amounted to $4.2 billion (about 282 billion rubles). The largest buyer was Egypt, which imported 5.8 million tonnes, or 23% of total supply for the year. If we compare the Egyptian purchases in the past year with 2015, the exports increased by almost a third. Unlike Turkey, Egypt has reduced purchases. In 2014, they imported 4.4 million MT of wheat, in 2016, 40% less to 2.6 million tonnes.

In addition to Egypt, Russia has twice increased its sales in Bangladesh — at the end of last year, the Asian country became the third on volume of purchases of Russian wheat. In 2015, Bangladesh imported 892 thousand tons, in 2016 — 1.8 million so two times increased exports to Nigeria up to 1.4 million tonnes, and an African country last year among the five largest buyers of Russian wheat. Also twice increased exports to Morocco, and Lebanon — and 708 to 735 thousand tons, respectively.

Record last year became the export of corn. Abroad sent 5.3 million tonnes is 44% more than in 2015. the Amount of shipments was $859 million (about 57 billion rubles).

Turkey has reduced purchases of Russian corn. If in 2015 the volume of deliveries amounted to 1.4 million tons, whereas last year was 838 thousand tons.

On the back of lower purchases Turkey Russia substantially increased shipments to Korea, which last year imported 937 thousand tons of corn. Five times increased the export to Iran up to 704 thousand tons, almost four times for Lebanon to 410 thousand tons.

In 2016, 20% increase in supplies of sunflower oil — up to 1.8 million tonnes, compared to 2015 year. Again, Turkey has reduced its purchases of this product from Russia, for two years they fell by 10%, but increased exports to China and Iran. The export of rice and pulses, also at the end of last year has grown in comparison with 2015.

Resentment over the tomatoes

As already noticed, officials from both countries, the Turkish side withdrew duty-free treatment in respect of a number of Russian products, to achieve permission for the delivery of tomatoes to Russia. Potential amount of these supplies is significantly less than the amount specified on the import of Russian products. Total supplies of wheat, corn, sunflower oil and meal, beans and rice to Turkey last year amounted to about $1.2 billion, or 80 billion (according to the FCS). The amount of supply of Turkish tomatoes to Russia in 2015, $258 million is more than the total Turkish exports of goods for the whole of 2016.

As the President of the National horticultural Union, Sergei Korolev, if you compromise and allow the Turks to import tomatoes in Russia, it may seriously hit by the Russian manufacturers, who for several years have invested in production and can’t compete with the Turks for the price. But from the introduction of duties on wheat, corn, oil and meal, sunflower, beans and rice (an actual ban on the import) and the Turkish side will suffer huge losses, experts say. Turkish production will be heavily underutilized, Russia accounted for an average of 60% of the total imports of wheat, corn and sunflower oil country. Quickly find new and so the major vendor.

— The best option would be to negotiate with Turkey about duty-free on imports of Russian products. If this does not happen — will hurt both the Turkish and Russian business. We supply products, which is processed in Turkey, Turkey is a logistics operator, which is well located geographically. For Russia withdrawal of duty-free regime for this range of products will lead to lower demand in foreign markets, but Turkey will suffer, their businesses will be underutilized and they just don’t will process and send on. It is advisable to sit at the negotiating table and to resolve this problem as soon as possible. When two countries can’t agree, that win only the third country, — said Dmitry Vostrikov.

The ban on the import of Turkish tomatoes and other products to Russia effective from 1 January 2016. According to the report of the President of the National horticultural Union, Sergei Korolev, during this time, the tomato production in Russia grew by 33% to 297 thousand tons per year, while the share of imports dropped by 30% to 468 thousand tons In respect of a number of Turkish products already lifted the ban on the import, such as citrus, apricots, plums, onion, shallot, cauliflower and broccoli. As already reported by “Izvestia”, the Rosselkhoznadzor considers the question of lifting the embargo on the import of other Turkish products (chicken, Turkey, tomatoes, cucumbers, apples, etc.).