BELARUS NEWS AND ANALYSIS

DATE:

03/01/2007

Belarusian official says Russia has mostly halted sugar imports

The Associated Press

MINSK, Belarus: Russia has virtually halted imports of Belarusian sugar, an official in Minsk said Wednesday, amid politically charged disputes over rising prices for Russian energy supplies.

Russian authorities "essentially stopped" issuing customs documents needed to bring Belarusian sugar into Russia as of Jan. 1, Ivan Danchenko, head of the state-run agricultural production concern Belgospishcheprom, told a news conference.

Belarusian sugar producers have lost some US$2 million (?1.5 million) and might be unable to fulfill 2007 contracts with Russian candy makers, Danchenko said. "We do not intend to tolerate this situation further and call on the Russian government to make a decision," he said.

Russian officials could not immediately be reached for comment in the midst of a holiday that ends next week.

Danchenko's remarks came amid a series of blows to the Belarusian economy at the hands of Russia. Belarus grudgingly signed a contract with the Russian state natural gas monopoly Gazprom that more than doubles the price for Russian gas this year, and is asking Moscow to scrap a new customs duty on oil exports to Belarus.

Sugar made from Belarusian sugar beets is not subject to Russian customs duties. Belarusian producers began experiencing problems with exports late last year, amid suspicions in Russia that Belarusian companies were sending Latin American-produced cane sugar to Russia in the guise of beet sugar to avoid customs duties.

Belarus' Soviet-style economy depends heavily on cheap Russian energy supplies. The trade disputes reflect severe strains in ties between the two former Soviet republics, which have been frayed in recent years by a power struggle between Russian President Vladimir Putin's Kremlin and Belarusian President Alexander Lukashenko.

Source:

http://www.iht.com/articles/ap/2007/01/03/business/EU_FIN_Belarus_Russia_Sugar.php

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