Moscow to Restore Ties with Ankara Contrasting Public Opinion

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By Marina Romanova

fpvyfTurkish president Recep Erdogan travels to St. Petersburg on coming Tuesday, August 9th, to meet his Russian counterpart Vladimir Putin to restore two nations’ economic ties being down since Turkish air force dropped Russian Su-24 fighter jet near the Syrian-Turkish border in November 2015. The followed termination of Moscow-Ankara affairs painfully hit public relations, economic affairs and trade.

Food, Agro Products and Joined Projects

Initially Ankara has been one of the beneficiaries of Russia’s food embargo against the west. In 2014, bilateral trade in agricultural products increased by 19 percent to US$4 billion. When Moscow has embargoed a range of products and foodstuffs, including shipments of fresh fruits, vegetables and nuts, poultry and salt, food exports from Turkey were in serious trouble. Nearly 20 percent of Russia’s vegetable imports are provided by Turkey, and about US$31 billion in bilateral trade was at risk amid deteriorating relations between the two countries.

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IKEA to Beat “The Way to Communism” and to Invest US$2.1 BLN in its Russian Malls

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By Marina Romanova

1454919171_ikeaThe Supreme Court of Russia has affirmed the lower court’s ruling rejecting a claim of an agricultural enterprise, former collective farm “The Way to Communism”, which demanded to demolish two 15 store’s buildings of the “Khimky” business park, belonging to Swedish furniture retailer. Thus the court has settled the claim of IKEA, Russian news agency RIA Novosti reports.

The 16.4 hectare plot of land has been at the root of a long-term dispute between the retailer and former collective farm, now called Khimki Collective Agricultural Enterprise. They accuse IKEA of faking the documents required to obtain the land on the Leningradskoe highway, the Russian Kommersant daily reported.

Agricultural Enterprise board members claim that their signatures were faked and that they never agreed to give away the disputed land to the Khimki administration. Khimky city administration leased out the plot of land to IKEA for 49 years in 1993 and then sold the land to the retailer in 2011. Continue reading…

Russia to Become Europe’s Second Largest Retail Market

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Feb. 3 – Russia is to become Europe’s second largest retail market with sales in 2011 amounting to US$621 billion, according to Euromonitor International, and may become the largest market in Europe by 2013-2014.

Retail sales in Russia rose 9.5 percent year-on-year in December, compared to 2.6 percent growth in the UK. Continue reading…

Unilever to Expand its Business in Russian Beauty Market

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Oct. 17 – The Anglo-Dutch Unilever PLC said Friday that it had agreed to buy 82 percent of the Yekaterinburg-based beauty and cosmetics products manufacturer OJSC Concern Kalina for 500 million euros (US$700 million).

The deal, which has to be approved by regulators, “will strengthen and re-balance Unilever’s portfolio and competitive position in Russia, an emerging market with considerable potential and one of our priority countries,” said Paul Polman, CEO of Unilever.

Kalina is Russia’s largest local personal care player with leading positions in skin and hair care and an expected 2011 turnover of around 303 million euros, Unilever said. Continue reading…

PayPal to Enter Russian e-Payments Market

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Aug. 26 – American payment system PayPal will begin carrying out money transfers in Russia and the Ukraine starting from the end of September, the company said in a statement.

The PayPal web site has published new money transfer tariffs that will come into force on September 24.

The fee for sending money to Russia will range from 0.5 percent to 1.5 percent depending on the country you are sending it from. Sending money within Russia will cost 1 percent. Continue reading…

State Duma to Ban Beer Sales at Night

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Jul. 12 – The State Duma may approve additional restrictions on the sale of beer with alcohol content of more than 0.5 percent between 11 p.m. and 8 a.m. in the country before the summer recess. The bill would also ban the sale of beer altogether at outdoor kiosks (stalls), train stations and street stands, at which around one-third, or about US$6 billion of Russia’s beer is sold.

The bill also expands the number of places where alcohol consumption is prohibited. These places will now include courtyards, elevators, building entryways, playgrounds, forests, parks and beaches. The law is expected to fully enter into force by January 1, 2013, but it is already causing shock waves in the industry. Continue reading…

E-Commerce Market to Grow in Russia

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Nov. 4 – Russians will spend US$19.5 billion online this year, according to research of the market’s value released by Google Russia and Citibank on Tuesday.

Spending by online shoppers will grow to US$26 billion in 2012 from US$20 billion anticipated this year, the study found. Continue reading…

IKEA to Freeze New Investment into Russia

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Oct. 8 – Sweden’s IKEA Group, one of the world’s largest home product retailers, turned down its plan to invest up to US$1 billion in the construction of a giant shopping complex in Moscow.

The shopping complex was expected to be the largest in Europe with a total area of 400,000 square meters over 50 hectares of land in the Mytishchi district of the Moscow region, which IKEA already bought. Continue reading…

Russia, Kazakhstan and Belarus Create Customs Union

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Jul. 9 – Russia, Kazakhstan and Belarus have reached an agreement creating a new Customs Union (CU)  starting this week that will put all three countries under one customs territory.

The new Customs Code will simplify Russian-Kazakhstan border customs registration, though Customs control at the border will be remain until 2011. The three countries have also adopted technical quality and sanitary standards for goods, a measure that allows goods tested and approved by watchdogs in Belarus to be sold in Russia and Kazakhstan without being tested by their agencies. Continue reading…

Retail Giant Auchan to Declare 2009 Turnover in a Court Ruling

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Mar. 30 – French retail giant Auchan, which has never publicized its financial indicators in Russia, has now been compelled to do so in a judicial dispute with tax inspectors.

The operational company of the hypermarket network Auchan, is trying to challenge the decision of the Moscow branch of The Russian Federal Tax Service (FTS) on tax grudges regarding the ministry’s attempt to collect 739.7 billion rubles of taxes, fines and penalties. Continue reading…

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