Loading ...China Begins Direct Sales Of Fruit & Vegetables To Russia
Submitted by Tyler Durden on 08/12/2014 11:04 -0400
Despite the ongoing mainstream media meme that Russia is becoming ‘isolated‘ from the rest of the world thanks to Western sanctions, it appears they have found a few new ‘old’ friends to become un-isolated with. On the heels of Russia’s food-import-ban sanctions last week, Russian and Chinese officials have announced an agreement that China will start selling fruit and vegetables directly to Russia via a special logistics center in Russia’s far east. Notably, this week saw Russia’s GDP beat consensus expectations, Ruble rally, and stocks jump as German confidence plunged – can you say blowback?
China will start selling fruit and vegetables directly to Russia, and Baorong company plans to set up a special logistics center in Dongning on the border with Russia’s Far East to do it.
The 70,000 square meter wholesale market and 30,000 square meter warehouse, fitted out with refrigerators and other equipment, will be in a special cross-border customs zone, ITAR-TASS cites the head of the Association of Applied Economy of the Heilongjiang Province Zhang Chunjiao.
“Direct export of fruit and vegetables to Russia will be organized from it,” she said.
It will cost $9.7 million to construct. Customs clearance times will be reduced, and there will be no need to double-check the cargo because of video surveillance in the warehouse.
A Chinese company Dili, also intends to create a similar cross-border trade zone by the end of 2014, Zhang Chunjiao added.
The announcement comes after Russia introduced a 1-year ban on imports of some agricultural products from the EU, US, Australia, Canada, Australia and Norway last week. If it lasts, it could cost European Union members $16 billion, Vygaudas Usackas, the EU ambassador to Russia, estimated.
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We assume payment for these imports will be in Rubles or Renminbi… not US Dollars.