Page 45 - RusRPTJun19

grew 4.6% to $211.965bn.
The volume of trade between Russia and the United States reached around $6bn in the first quarter of the current year, a 25% year-on-year, new data from Russia’s Federal Customs Service reveals, according to Vestnik Kavkaza. Russian exports to the US saw an 18% increase from January through March and amounted to $2.686bn. At the same time, imports from the US to Russia grew by 29.4% and totaled $3.292bn. The US share in Russia’s foreign trade turnover increased to 3.8% from 3.1% a year ago. In 2018, trade turnover between the countries amounted to around $25bn, marking a 7.86% increase against the previous year. The modest overall trade numbers follow years of American sanctions against Russia and countermeasures from Moscow. Washington introduced economic penalties in 2014 over Russia’s involvement in the crisis in eastern Ukraine and Moscow’s decision to annex the Crimea Peninsula from Ukraine. Since then, the measures have been expanded for various reasons with the Kremlin responding in kind. Russia’s overall trade turnover amounted to $158.6bn in the January-March period, up 0.1% from the same period last year. Exports reached $104.9bn, having increased 1.4%, while imports were down 2.4% year-on-year to $53.8bn.
Hong Kong becomes first SE Asian market to allow pork and beef imports from Russia. The Russian agricultural watchdog, Rosselkhoznadzor, has said that Hong Kong is to allow pork and beef imports from Russian producers. Hong Kong has become the first South-East Asian market to allow Russian meat for import. The approved list covers 23 pork and 3 beef producers, including leading domestic breeders Miratorg, Rusagro and Cherkizovo. For 2019, $A forecasts Hong Kong imports at 375,000 tonnes of pork and 550,000 tonnes of beef. In 2018, Russia exported 84,000 tonnes of pork and imported 330,000 tonnes of beef, so there is only rather modest potential at the moment. However, the update highlights improving sentiment towards Russian meat as regards global quality standards. Sustainable access to foreign meat markets creates the incentive for local producers to build greenfield capacities. Industrial companies cover 92% and 84% of Russian pork and poultry consumption, respectively, while the beef segment strongly relies on imports (17% of consumption) and households (45%). Rusagro is constructing a project in the Russian Far East with total capacity of 75,000 tonnes (to be completed by 2022) and is best positioned for an acceleration in Asian trade. Its prime focus remains on the Chinese pork market (annual consumption of 55mn tonnes and imports of 1.6mn tonnes), which has yet to be opened up for Russian meat producers on a large scale.
In 2018, exports of services increased by 12% and imports by 7%, according to the Russian central bank. Thanks to the World Cup, the export of tourism services increased by 28%. Foreigners bought Russian services for $65bn in 2018. Of this, 18% consisted of tourism services and 34% of transport. Air transport accounted for most of the value of transport services. 11% of the services purchased by foreigners from Russia went to the Commonwealth of Independent States (CIS), 45% to the rest of Europe and 5% to China. The Russians bought foreign services in 2018 worth $94bn. Of this, 36% consisted of tourism services and 16% of transport. 6% of Russian foreigners purchased services from CIS countries, 51% from other parts of Europe and 3% from China. As a holiday destination, the proportion of Russians favored by Turkey was 7%. Egypt was previously a popular destination, but after the terrorist attack in 2015, Russia banned the organization of trips there. The ban was lifted last year, but tourist flights did not start yet.
45 RUSSIA Country Report June 2019 www.intellinews.com