Accession of Russia to WTO will ensure sustainable increase in import of cut flowers

In 2012, according to estimation of Credinform experts, import of cut flowers to Russia decreased by 38%. However, as was noted by experts, we should not expect further import reduction of this product. Average growth rate of flower purchases from abroad in the next years will be 4.5% per annum.

The share of imported flowers on the domestic market in past years fluctuates at the level of 80-90%. Reduction of import in 2012, which is related to increase in own production of flowers, will not significantly affect the industry in the future. At the same time, import delivery, according to the analytical survey “Fresh cut flowers market in Russia”, will only grow, which is stipulated by reduction of purchase prices due to Russia’s accession to WTO. After 2013, Russia assumed commitments to reduce rates of duty on import of cut flowers and buds from 15 to 5%.

The biggest volume of cut flowers delivery to Russia – both in natural and in cost respect – is provided by Lithuania, which nether produces nor grows the plants; it is followed by the Czech Republic and by Slovakia. It is interesting that the biggest volume of delivery of roses, which are so beloved by Russian citizens, is also provided by Lithuania, the second place is occupied by the Czech Republic, and the third – by Ecuador. However, the roses imported from the Czech Republic and Ecuador are significantly cheaper than those from Lithuania. Therefore, Lithuania transits batches of goods that were prohibited for import from other countries, also including the Netherlands.