tv [untitled] September 18, 2010 7:30pm-8:00pm EDT
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trying to get hold of nuclear weapons and nukes are going to be around for quite some time it's deterring now should we just stop talking about nuclear free world and just tag it as the wishful thinking you know what i think of human beings need goals and more than just rhetorical gold scolds that are that are achievable so. why the states and russia are key to this because we have ninety percent of the nuclear weapons on the earth and we cannot go the two of us the russians and the americans cannot go to china or to india or pakistan or any other nuclear power france great britain and say reduce your nuclear arsenals until we've done our job so it all begins with the bilateral negotiations between the united states and russia if we are serious about dramatic reductions in these nuclear arsenals then we widen the club and bring in all the nuclear powers and. ideal the at least
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today my guest is out of. the unusually dry and hot summer has destroyed much of this year's crop and rush the state had to impose restrictions on grain exports to keep prices down but what does it mean for the rest of the world will be asking the presidents of the russian brain that is all just. russia's one of the world's biggest grain exporters but there's some a severe drought has badly affected the harvest in order to maintain supplies of whom russia has imposed a ban on exports that's boosted world grain process to a two year high and prime minister putin says the ban may remain in place until the autumn hold the next year the un says two years without crushing grain in the market may lead to serious trouble in two thousand and eight. to food riots in some developing countries.
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this is to let you know mrs not just the thank you for joining us welcome to our program hello. my first question is about something that many people including our audience worldwide they're concerned about how significantly has the russian embargo changed the world grain prices and can it change them and how significant is that price. if it does. change anything any more as the change happened already there is this is good news ben has already been imposed therefore in the green on the world market has already made it seem practical from now on only improve if by any chance the exporting a certain amount of grain this could have a positive impact only in the world prices would drop slightly. however nobody is expecting russian producers to export significant amounts of grain in the season. we aren't expecting the ban to be lifted on january first as this would result in
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automatically equaling off domestic and world prices or is the purpose of the ben to prevent address to growth of the local tries is at present the gap between domestic and a world crisis is too big to leave the bed and she wanted tiny correctly equal the prices the national community fears the repetition of the food crisis of two thousand and seven which sparked riots and countries from mexico spotlights. more. the worst drought in at least half a century has a way of agreeing surety in russia the government has been there. for the next twelve months. to protect consumers inside the country so chalk through international markets bread prices to hear high it's a reminder of the situation in two thousand and seven and two thousand and eight
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when hutu did use too right. back then iran thirty countries imposed restrictions on the export of a good cultural product prices soared and public discontent is believed to have triggered the collapse of governments in haiti and madagascar this year mozambique has become the first country to suffer a food shortage is the government's decision to raise bread prices by thirty percent lead to riots you know which at least seventy people died and around three hundred were wounded in the violence the price rises were revoked india has had their way to export ban for the last three years it's reported to have good lifestyle and some great stories. disturb the volatility on the global grain market united nations food and agriculture organization is holding an extraordinary meeting on prices next week.
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do you think russia's in bargo could trigger a food crisis and underdeveloped countries that depend on grain imports do you think the situation in those countries could get out of control again and would they blame russia for it anymore but i know this won't happen in the world has enough resources to compensate for russia's absence on the world market. today are worlds weeks talking east march larger now than three years ago when the world indeed faced problem of food supply. at that time prices including international ones worth one point five times higher than to d c would. the government impose the grain export embargo in order to protect consumers from a drastic pries growth within the country how did this decision affect grain
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producers they must have lost money because of it i mean they would have benefited from higher prices. and yes of course you're right producers in our southern regions we get a rather good harvest in spite of extremely negative weather conditions and they didn't benefit from the embargo a study in the price growth stopped and even reverse the prices have been dropping since the implementation of a ban not by much though but there is still dropping certainly this fact makes grain production less attractive to investors and has a negative effect on their revenues which again is an idea of how much they lost the most calculation in exact amount is spread quickly impossible it depends on quite a number of things after such as their investments their net cost their harvest it's an acknowledged use regions and so forth. and therefore we cannot sum up their
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taunts a loss or however we can tell how much is lost through prices for instance but. the southern federal district is close to seaports and therefore its logistic expenses are lol so by the time the export ban was imposed their price was almost six thousand roubles for one ton of brain to date has trailed by almost one and a half thousand rubles and that's how much they lose in which john and this is quite a lot it's a bit is that as for the world market the price is grown by at least fifty dollars you mentioned seaports. russia many grain producers dependency ports they exported their grain through those ports but now. their logistics expenses they're being replaced by costly one such as those crane producers now have to transport their grain to the northern and eastern regions of russia. is
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there an efficient infrastructure for that. yes the reason for structure for moving such amounts regions have about nineteen million tons of surplus grain thirteen million tons in southern russia and six million in siberia. on the other hand the need for grain in the volga region and central russia is about sixteen million tonnes and add a couple of millions for places that traditionally don't produce their own grain like sink petersburg and moscow so in toronto we need to transport about eighteen million tonnes that's not a problem for our infrastructure being misty the only problem is with the cost of transport. for instance the region concerns such as mills and
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ford or factories used to pay for and a half thousand herbals a tonne. which is the prize in the southern ports that. it's six thousand herbals a ton minus the cost of transportation bill which is about a thousand and a half rubles a tonne. but now after the ban they have to pee six thousand euro rubles plus in another fifteen hundred two roubles a tonne for transporting grain from the south to the volga region so that's seventy five hundred roubles a year so they prize by three thousand rubles overnight. but of course that's quite a long so now consumers refused buying at such high prices producers in southern russia refused cutting prices they used to export their grain at six thousand and
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ton another asked to sell it at three thousand so that you can buy it at the old price self four and a half thousand rubles so the situation is rather unusual and complicated but we hope that stamps will be taken soon the president has ordered to cut the logistics expenses you know in order to reduce the cost of transporting grain for both consumers and producers. who. understand in response to. the world market will have to adjust and regroup reconfigure itself was going to be used for example you mentioned surplus grain and other producers. don't you think that by the time the ban is lifted our own producers will lose their current position in international markets but. that. depends on how competitive our prices are. actually the difficulties that we are
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going to face are of a different nature i'm not really ward that we would lose our positions on the world market because we'll. them less than ten years ago and we won them through our load competitive prices that's because our projection cost is low but as long as all formers agree to low wages we will have better prices than our rivals in europe or america the problem is that russia will now be regarded as an unreliable country we made the decision to ban green exports so unexpectedly that the world no longer trusts us and this fact will impact prices consumers would rather pay five dollars more to our rivals than paying less to us but not having confidence that we will deliver it and it will take us some time to restore
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our reputation during which will be losing money. is saying that because of the ban we fail to deliver even the grain that has already been paid for under existing contracts yes among other things. ever know the russian exporters too can bend to each of the force mature provision to avoid their losses if. they had contracts with egypt and other countries but stuff so no they're old buying grain from other countries and delivering it to customers at contractual prices to fulfill their obligations up here. because they don't want to risk losing their major customers with. the open but he says out of cesky president of the russian grain the spotlight will be back shortly after the break we'll continue this interview so stay with us to end up.
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the. sergeant of the israeli defense forces. during his service scorched a street fight. on the colonel of the chilean armed forces participated in keeping down a military revolt. come. the sergeant of the u.s. army. trying to become an american by getting pardon the. franks and reasons differ but one thing brings them together once they disobey the. wealthy british style stock.
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market. has come to. find out what's really happening to the global economy with max concert for a no holds barred look at the global financial headlines tune into kinds a report on our. welcome back to the spotlight i'm just reminded that my guest in the studio today is. president of the russian grain union which talking about the grain employed and caused by the russian government is here. too to protect the prices on the internal part market and spends much of you know this is good at the imbue sad the
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benefit our partners and what's most important our reputation on the world markets the government imposed that bound it was a force and we not only of the. signing any new contracts but we also fail to even those that were paid for do you think it was the only possible solution will have been done differently. believe it could have been handled in a different way i think it was done in too much. i think nothing would have happened if the embargo date had been moved forward from august fifteenth with. september first say. would have changed. and both the world and are all market we were going to push forward with that we should have enabled the existing commitments to be. in only authentic this then there would be no problem. possibly there was some secret plan behind. this for
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example not to let someone make extra cash or something you know the stock exchanges for them any advance information as a way to make more money actually we help them make money by making this decision in such a haste market reacted instantly when the prices surged they could have been going up smoothly had we issued a warning would have allowed some time for preparations in the increase would have been so we're just speculation it would have been more modest yes of course the way we did it was totally unexpected for everyone it is a result the world price fifty dollars while the domestic price dropped by fifty dollars and now we have this gap. spotlights. has tried to find out what do people in the streets of moscow think about the situation in the country let's take a look. there to try to find out if she's doing the right thing by building great
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wealth giving a little. more it can. bring peace in the world. i think it's the right thing for. grain exports because we should have enough. i don't think we should keep prices low. because. i think it is the right thing to do. first. i think it's right because of the situation with the drought over the country there is a shortage of grain. think it's great because the shortage is simply made up. green left from previous years there's definitely no shortage. of your competition in the market. so. i'll. get.
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up. you mean domestic crisis and certainly not into domestic process will now depend on the domestic balance that is whether or not we have in our resources to provide for both of the current season and the next one is currently the prices are falling because at the start of season resources are considerable before january being grain deficient regions will have used up their resources i mean the boulder regions in central russia will have consumed old their grain and will have to import in the meantime south produced grain is not being sold domestically because southern farmers are dissatisfied with the current prices are expecting comics and thus the price formation will have to be based on the purchasing prices in the
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south plus the logistics costs that will have to be. in keeping with the presidential order the government now decides to impose some favorable tariffs for grain haulage that these will certainly can seem price growth if not the prices will grow in any event starting from the new year in motion is it necessary at all to change russia's pricing system and does enhance competition on the grain markets . frankly speaking i do have a point of view of my own that i've rather often offer to the public in my view it's counterproductive to freeze the prices it's populism and it later has a rather grave on the general situation in the economy as a whole. it's much more productive to fight poverty in the pockets of the people. and for these purposes the world has developed efficient tools that work well.
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for example the u.s. department of agriculture spends still a lion's share of its budget on food stamps that is food aid cysteine still poor. and this is an alternative to cash. in moscow we have the so-called social. good it also implies some price discounts and so on. so we might develop and introduce as social food cards and that would work much better than price containment by containing prices we also subsidize the rich pockets. we must understand that and the rich poor kids aren't much bigger consumers than the poor ones it's automatic they have more opportunities through price containment we spend more money to support the rich pocket then the poor
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pocket and. as soon as the vandalism post came up with a section eight hundred cords saying that grain were coming to the domestic market saying the guess traders were expecting demand to be lifted and then wish to sell at prices lower than the world price. are those who pushed through judging by what you said earlier the ground did work and everyone is toeing the line with the day for say a different thing. that's exactly what i'm. saying we saw the regions are not so in their brain it isn't coming to the domestic market but it's not because they're waiting for the world prices they're not happy with the current domestic prize which has dropped after the ban if prices go back to an acceptable level i mean there is no need to bring them up to the world levels this makes no sense but everybody understands what social responsibilities even a form is in southern reaches what they want is
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a fair price which is about six thousand rubles a tonne that's the average price for the past half years half years ago the price was nine thousand rubles a tonne the limited in for one and a half years it stayed at the level of slightly more than three thousand roubles a tonne not long ago two and back to six thousand and begin falling again as soon as it heats the six thousand mark all the sales will resume the market will move and things will go back to normal here is what prime minister putin had to say in order to calm down the situation on the domestic grain moch. in order not to create unnecessary anxiety to ensure a stable and predictable business environment full market participants i should note that we can consider the abolition of the grain export ban only off to the next crops have been harvested and there is clarity on the grain balance zigzagging should not be allowed to.
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ski this situation that we currently have in our hands to what extent can be beneficial for the speculators the people who don't produce anything or maybe as the british call in the middle men. speculators need the market to move otherwise there is nothing they can do and all we could more. it isn't a bad place for speculators at this point in the market is that a standstill the problem hasn't been created by the speculators they have nothing to do with it they want the market to move on the contrary so what's going on with both was everyone so excited to. buckwheat is a separate story which is that we remember all too well the shortage of black wheat in the soviet period in as soon as we hear rumors about crop failures stores
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shortages store supply of problems people rush to buy what can be stored for long she's buckwheat is among the foods that are swept off the shelves in the first place like pastor and flower but pastor and flower were stored in excess at the moment when the rumors began spreading wild mockery train service were not very large but i can say they were small either in because we had the fortune ninety thousand tons of buckwheat in storage as a foggiest first last year's aug first reserves in mountain to fifty seven thousand chance the difference isn't very large but because buckwheat is normally purchased in small amounts we don't consume much bucket michelle for reserves or small to. sell slowly in retail chains and shops but it's. my last question it's about a mover angle so as the specialists are warning about it and we've been brain exports in the world grain prices went up the need price is independent of grain prices
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russia depends on need imports this bullshit and so meat prices grow because of our own actions no i don't think so we have a special program to increase domestic production of meat as part of the national project to develop the agricultural industries so by now we can almost cover our a need for poultry and we are making good progress with pork beef is the only meat where we still have some problem. but beef doesn't depend on grain coast feed on grass right so here we have a different kind of problem the problem is that there is no shortage of green but there is a shortage. so we expected a ten percent shortage. in each forder this year. and these two will have to be replaced.
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