Russia Macro Monthly Report - Russian Agriculture, November 2017: Can Russia Feed the World?

Please find Russia Macro report - Russian Agriculture, November 2017, prepared by Chris Weafer, Senior Partner at Macro-Advisory Ltd from Moscow. 

weaferShort summary of the report: 

Economy grows. The Russian economy is now growing again. The Economy Ministry expects GDP growth in excess of 2% this year as Russia pulls out of a three-year recession.
Agriculture bucks recession trend. Agriculture was the only major sector showing growth in the recession of 2014-17, with output growing 3.5% in 2015 and 4.8% in 2016, according to official figures. Growth in the sector of 4.5% is expected in 2017.
Key government policies – a perfect storm. Localization, counter-sanctions, ruble free-float, food security, subsidies and an ‘added-value in Russia’ approach are all helping food production to hit record levels in several sectors.
All according to plan. A strategic agricultural development plan was adopted in 2012 and is having a noticeable effect, with many targets reached ahead of schedule. Food self-sufficiency is a key element of national security.
Record production in many sectors. Grain production hit a new record in 2017, with harvest figures now revised upwards to nearly 130 million tonnes. Some sectors, such as poultry, now suffer from over-production.
And this helps inflation. Food items form over 40% of the CPI ‘basket’ in Russia. Greater production and competition is sharply reducing food price inflation, which impacts the CPI.
Food imports slump ... Russia was one of the world’s biggest food importers – over US$40 billion annually, which was over 30% of total consumption. But, in 2016, with a weaker ruble and counter-sanctions, food imports fell to around US$25 billlion.
… while exports rise. Agricultural exports were up 17% YoY in the first six months of 2017.
From guns to butter. Russia now earns more money from the export of food products than from military equipment. Latest estimates suggest US$20 billion of food exports in 2017.
Investment opportunities widening. Considerable areas of food production have been modernized in recent years, using Western equipment. Competition in some food sectors is now reducing profits and well-equipped producers can be bought more cheaply.
Politics no barrier to investment. The Russian government makes a sharp distinction between politics and economics and has repeatedly stressed that foreign investment is welcome in Russia.

Download here the full report in PDF format.


Maritime Workshop in Kaliningrad on 20-22 November 2017


On 20- 22 November 2017, a maritime workshop in Kaliningrad was organised by the Norwegian-Russian Chamber of Commerce and Innovation Norway.

The delegation was represented by H.E. Ambassador of the Kingdom of Norway to the Russian Federation Leidulv Namtvedt, Consul General Dag Malmer Halvorsen, Brunvoll Volda AS, Rolls-Royce Marine AS, Teknotherm Marine AS and Mørenot.

Regarding the program, delegation carried out visits and guided tours at Yantar Shipyard and Pregol Shipprepair Yard. During both visits, norwegian companies gave corporate presentations regarding their main activities. 

In addition to a guided tour at Yantar Shipyard, delegation visited a slipway for seeing a construction of trawlers for Lenin Kolkhoz and a shipyard museum.

An evening continued with a reception for the invited guests at the Hotel "Kaiserhof". 


The delegation at the Yantar Shipyard. Picture: Yantar Shipyard


NRCC Networking Meeting in Murmansk, 15 November 2017

On 15 November 2017, in connection with the VI Murmansk International Business Week, the NRCC networking meeting took place in the facilities of its member Hotel Park Inn Poliarnie Zori in Murmansk.

The meeting was productive, and NRCC appreciates members' enthusiasm and positive intentions to develop further bilateral cooperation.

Mr Jarle Forbord, NRCC Managing Director, opened the meeting by welcoming all the participants.


Mr Jarle Forbord, NRCC Managing Director, with the participants   

The expansion of the restrictive measures- 25 October, 2017

Dear NRCC members and partners,

Please find below the information regarding the expansion of the restrictive measures. The annoucement below and unofficial translation are provided by the Trade Representation of the Russian Federation in Norway.

Russia Responses on the Continuous Anti-Russian Sanctions by Extending Country’s Import Ban List

The Russian government has on October 25, 2017 extended the list of agricultural goods, raw materials and food products which are prohibited to import to the Russian Federation. 

The decision is made as a response to the continuous anti-Russian sanctions, and applies for the products originating from US, EU, Canada, Australia, Norway, Ukraine, Albania, Montenegro, Iceland, and Liechtenstein.

A political climate in the North gets tougher - Fiskeribladet from 25 October

Chair of the NRCC Board Liv Monica Stubholt in an interview to Fiskeribladet, "Fisheries will play a bigger role in the Norwegian foreign policy".

Please read the full version of the article here (in Norwegian).


Liv Monica Stubholt, Chair of the NRCC Board . The picture is taken from Fiskeribladet  

Hub organizing of Norway visa application process in Russia

On October 24, during the NRCC networking meeting at Multiconsult, there was given a presentation by Mr Eirik Sandsten, Director of Services Department, Section for Immigration Affairs, Norwegian Ministry of Foreign Affairs, regarding the Norway visa application centres in Russia. As was mentioned, today there are 23 centers that are open in Russia.  

If you are interesting to get more information about how and where to apply for Norwegian visa, please follow the links below:  (In Russian) (In Norwegian)

NRCC administration. 



The aim of the NRCC is to stimulate and improve business relations between Norwegian and Russian companies regarding import, export, shipping, business development, tourism or investment activities. More...


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