Russia has canceled fruit and vegetable supplies due to the fall of the ruble

Fruit and vegetable suppliers from countries the Kremlin calls “friendly” have canceled some export contracts with Russia due to the collapse of the Russian ruble. Profile publication EastFruit reported this with reference to market sources on Wednesday, November 27.

The cancellation of agreed deliveries affected exports from Turkey, Egypt and Iran. Companies in these countries demand price changes to account for higher currency risks.

Since the beginning of November, the Russian ruble has lost more than 10% against the dollar and the euro amid the strengthening of American financial sanctions, which hit 50 Russian banks, including the main Gazprombank.

On Wednesday, November 27, the value of the US currency rose above 114 rubles. At the Moscow Exchange, where trading in dollars and euros was stopped due to sanctions, the yuan rose sharply: its rate reached 15.2 rubles, also a record for a year and a half. Since the beginning of August, the ruble has fallen by 25%, fueling inflation in imported goods. Sellers of vegetables and fruits, which are mainly imported from abroad in the winter, have started to stockpile goods, expecting prices to rise.

According to Rosstat, on November 25, food inflation in Russia reached 10.2%, and prices for basic fruits and vegetables jumped by tens of percent. So, since the beginning of the year, potatoes have increased in price by 78.4%, cabbage – by 30.7%, beets – by 27%. In annual terms, tomatoes became more expensive by 22.5%, cucumbers – by 40.8%, onions – by 17%.

Earlier it became known that the devaluation of the Russian ruble almost reduced Gazprom’s shares to the value of one dollar per share.