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#26 - JRL 2008-174 - JRL Home
Food Imports To Russia To Grow To $35 Bln In 2008 - U.S. Expert

MOSCOW. Sept 24 (Interfax) - Russia will import $35 billion worth of food and agricultural products in 2008 compared to $27 billion in 2007, William Liefert, a senior economist in the U.S. Department of Agriculture's Economic Research Service, said at an agricultural forum in Moscow on Wednesday.

Liefert said the main factors behind the growth in food imports are GDP growth and the purchase power of Russians as well as the real appreciation of the ruble, which raises the competitiveness of imports compared to the products of domestic producers.

Imports of food and agricultural products to Russia will grow over the next two years, but not at the high rates as in the past, he said.

The only thing that could have a negative impact on imports would be high global prices for agricultural products, he said. Global prices, however, peaked two months ago and are currently sliding down.

The Russian government has stated its concerns about growing food imports on several occasions. First Deputy Prime Minister Viktor Zubkov said in July that more than 40% of the products in Russian stores are imported. All types of products are being imported even though Russian companies could produce many of them on their own, he said.

According to official statistics, Russia imported $27.6 billion worth of food in 2007, up 28% from 2006.