Exporters stop supplying fruits and vegetables to Russia due to new currency risks

Published 2024년 11월 25일

Tridge summary

The article highlights Russia's economic struggles with soaring inflation, currently at 7.4% annually, with real inflation possibly reaching 40-60% in 2024. This surge is fueled by increasing prices for vegetables, potatoes, and fruits, worsened by the ruble's devaluation. Consequently, fruit export contracts from Turkey, Egypt, and Iran have been canceled due to currency risks. The Central Bank's attempts to control inflation through interest rate hikes have failed, compounded by Russia's military expenditures in Ukraine. The article emphasizes that resolving the Ukraine conflict is essential to avert an economic crisis similar to the post-Soviet era.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to EastFruit, there have been several cancellations of previously agreed deliveries of fruits and vegetables to Russia from Turkey, Egypt and Iran due to the sharp devaluation of the Russian ruble and new currency risks when trading with this country. Here is a detailed analysis of the overall situation that caused these problems. Galloping weekly inflation Russia is currently experiencing galloping weekly inflation, with consumer prices rising by 0.37% over the past week. This has led to annual inflation reaching 7.4%, approaching the central bank's full-year forecast of 8.0-8.5%. However, economists do not trust these officially announced figures and estimate that real inflation in 2024 could reach 40-60%, which is in line with the average increase in retail food prices. The Central Bank's efforts to curb inflation by raising the refinancing rate have not yielded results. By comparison, the last time Russia experienced such high inflation was in the 1990s. This period ...

Source: Eastfruit