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much as the value of the entire economies of Poland, Czech Republic and Hungary combined. Over the last five years the ruble value of housing has grown by 16%, mainly due to new construction and the expansion of the city limits. In dollar terms the all time high was set in 2014 when the value of Moscow housing topped $1 trillion. This compares to the value of housing in London of $2.15 trillion. On a per capita basis the average value of housing in Moscow is $70,800 vs $244,300 in London. As of the start of this year, the most valuable housing in Moscow is in the western and central districts, which account for about a third (35%) of the total housing stock.
9.1.5 Retail sector news
The share of Russian cheeses in stores in 2016 reached 75%, said the Minister of Agriculture of Russia, Alexander Tkachev on January 6, reports Vedomosti. Tkachev said that the Russian producers have successfully replaced foreign cheeses with home made varieties and Russian-made cheese will continue to increase its market share. "Cheese used to be imported, but now it is dominated by Russian producers. We registered the 10 largest producers, and, of course, I expect that our share will grow to 90%." According to Tkachev, Russia will "rearm" the dairy sector in the next five to seven years following the example of Belarus. "We have great respect for our colleagues from Belarus. They taught us a master class. We should follow its lead in the next five to seven years and move in the same direction. Therefore, the task is to rearm our [dairy] production," the minister said.
For the year ended in November 2016, the sales of confectionery products in Russia fell by 2.4% y/y in real terms, according to Nielsen, versus a year earlier when the market fell only 0.1%. Executive Director of the Center for Studies of the confectionery market Elizaveta Nikitin agrees with the findings of colleagues. Sweets are not necessities, so consumers who are in austerity mode, easy to discard them, says Director of to work with global companies «Nielsen Russia" Marina Lapenkova. Saving a cumulative effect: shock rise in price of the product occurred in 2015 and continued in 2016, albeit at a slower pace. Last year, prices for confectionery products rose by 9.4% against the 18.4% growth in the previous year, resulting in data Lapenkova. Revenues continued to decline as consumers, adds Nikitin.
Carlsberg A/S warned the Russian beer market will shrink at least 5% this year , stunting the Tuborg maker’s growth prospects as a ban on large bottles takes hold. The market, which was the source of a sixth of last year’s operating profit, is declining after Russia prohibited selling beer in 1.5 liter plastic bottles in January, Chief Executive Officer Cees ’t Hart said on a call with reporters Wednesday. The stock fell as much as 3.8 percent in Copenhagen, the steepest intraday decline in almost six months, even as Carlsberg forecast higher earnings. Carlsberg’s Russian business, built upon the biggest acquisition in the Danish brewer’s history, generated almost half of operating profits seven years ago. But a series of shocks to the market -- including plunging oil prices, Western sanctions, recession and higher beer taxes -- has diminished the weight of that market in the brewer’s earnings. The Danish company sells about a third of the beer consumed in Russia under brands such as Baltika.
92 RUSSIA Country Report February 2017 www.intellinews.com