Information for fruit and vegetables business in CIS
Russia's trade war against Ukraine affects Ukrainian canning industry
Ukraine traditionally is a rather large exporter of canned fruits and vegetables to the Russian Federation. Furthermore, Russia is almost only target market for some Ukrainian canning factories. Ukraine actively exports canned cucumbers, tomatoes, beans, peas, corn as well as vegetable, aubergine, zucchini pastes and other canned products to the Russian market.
However, according to Fruit-Inform, the demand for Ukrainian products has sharply fallen in Russia since the beginning of the trade war with Ukraine. Russian importers' concern is well-grounded due to probable interruption of imports of canned fruits and vegetables from Ukraine.
Russian importers believe that signing of the Association Agreement between Ukraine and the EU may lead to an increase in import duties on Ukrainian products in Russia or introduction of other nontariff restrictions. In connection with that, they are actively seeking for alternative sources in other CIS countries (Uzbekistan and Armenia in particular).
At the same time, Fruit-Inform analysts expect a fall in Ukraine's exports to Russia to affect the Ukrainian canning industry insignificantly thanks to a simultaneous decrease in production of canned fruits and vegetables in this season.
We would remind you that more information about current developments and future prospects in the Ukrainian and Russian fruit and vegetable markets is available for subscribers of Fruit-Inform Weekly service package.