IKAR in Mass and Industry Media

Problems with Turkey to hit Russia's 2016/17 sunflower exports -analyst

Reuters

MOSCOW, March 22 (Reuters) - The suspension of Russian agriculture products supplies to Turkey will hit Russia's sunflower exports this 2016/17 marketing year, which started on Sept. 1, Moscow-based consultancy IKAR said on Wednesday.

Turkish buyers had previously put Russian wheat, maize and sunflower purchases oil on hold, despite denials from Ankara that it had effectively banned imports from Moscow.

Russia could have supplied an additional 230,000 tonnes of sunflower oil worth around $165 million to Turkey between mid-March and the end of 2016/17, IKAR said in a note.

Russia's sunflower oil exports were running at a record pace before the problems with Ankara started. Turkey is the largest market for Russian sunflower oil and Russian origin is the main source of sunflower imports for Turkey.

Turkish Economy Minister Nihat Zeybekci on Tuesday said an improvement in political ties with Russia "is not fully reflected yet in economic relations. Currently, the restrictions on visas and obstacles for contractors are fully in place."

Russia imposed trade restrictions on Turkish goods and other sanctions after Turkey shot down a Russian fighter jet near the Syrian border in November 2015.

Moscow has lifted most restrictions as the two countries restored ties in August, but it has yet to resume purchases of some vegetable products from Turkey.

The country has exported 1.1 million tonnes of sunflower oil, of which 370,000 tonnes to Turkey, between the start of September and the middle of March, IKAR added.

IKAR also said it had reduced its forecast of Russia's 2016/17 wheat exports by 0.5 million tonnes to 27.5 million tonnes partially due to problems with supplies to Turkey.

Turkey is the second largest market for Russian wheat after Egypt.

24.03.17

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