BELARUS NEWS AND ANALYSIS

DATE:

18/01/2007

Belarus to limit sugar supplies to Russia

Belarus has pledged to impose self- restrictions on sugar supplies to Russia, Belarussian Vice Prime Minister Ivan Bambiza said after talks with Russian Agriculture Minister Alexei Gordeyev here on Wednesday.

Gordeyev said Belarussian sugar supplies to Russia would not exceed 180,000 tonnes in 2007 and 100,000 tonnes in 2008.

"The implementation of this agreement will cover a period of two years for Belarussian and Russian business to get a clear idea of the obligations assumed by the two countries and could plan investments in agriculture, including sugar processing," Gordeyev was quoted by the Itar-Tass news agency as saying.

"The document will be initialed today and signed shortly afterwards," he added.

In accordance with the agreement, sugar supplies will be simplified from both sides. "In particular, different restrictions on the border will be lifted," Gordeyev said.

"The governments of both countries will control sugar supplies on a monthly basis," he said.

Bambiza said that "the agreement reached today meets the interests of both Russia and Belarus, given the dynamics of the development of agriculture in both countries as well as the fact that Russia and Belarus harvested a record crop of sugar beet in 2006 (30 million tonnes in Russia and four million tonnes in Belarus)."

"Considering this and problems with the sale of sugar in Belarus, we tried to resolve the situation promptly so that our producers could start working in a normal mode," Bambiza said.

Russia introduced duties on Belarussian sugar late December. Belarussian official say sugar producers have already lost around two million U.S. dollars as a result.

Source:

http://english.people.com.cn/200701/18/eng20070118_342285.html