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Indonesia to Trade Coffee for Fighter Jets with Russia
CoffeeNetwork (New York) – According to local news sources, the Indonesian Ministry of Trade has announced that PT. Perusahaan Perdagangan has signed a Memorandum of Understanding with Russian firm, Rostec, to barter coffee and other commodities, such as palm oil, for fighter jets.
Russia currently faces economic sanctions imposed by the United States and the European Union. In response, Russia has limited imports from the US and EU and is looking to other countries for commodity imports.
Exact terms of the deal have not yet been made public.
Coffee sales are on the rise in Russia, growing by 1.2 percent in 2016 – according to data research company Nielsen. The trend represents a turnaround for the drink’s popularity in the country after sales fell by up to 0.5 percent in earlier years.
In Indonesia, coffee production is expected to increase from 10.6 million bags green bean equivalent (GBE) in MY 2016/17 to 10.9 million GBE in MY 2017/18. G