BELARUS NEWS AND ANALYSIS

DATE:

22/06/2009

Putin Hints Belarussian Quotas On Milk Prompted Russia's Ban

The Moscow TimesBefore a feud broke out over dairy imports, Belarus had raised its quotas on milk exports to Russia by 40 percent, Prime Minister Vladimir Putin said Friday, hinting at the reason behind Russia's decision to temporarily ban nearly all Belarussian milk.

"There was an agreement on the size of the quota. Unfortunately, our partners raised it 40 percent, and this created well-known difficulties for our milk producers," Putin said, RIA-Novosti reported.

Agriculture Minister Yelena Skrynnik has said Belarus and Russia agreed on cutting imports of powdered milk from Belarus from June 15 to Sept. 30. "During the period of 'big milk,' there appears a certainty that milk made by Russian agricultural producers will be processed and bought on the market at fairer prices," the ministry's press service said.

Putin said the two sides had reached an agreement that Belarus would not supply powdered milk in the second and third quarters but that Belarus was reacting "badly and emotionally" to the deal.

"The economy is the economy, and we have to put our relations in line with the conditions of the market," Putin said.

The Federal Consumer Protection Service said last week that the bans would be lifted after a high-level delegation from Minsk agreed that Belarussian dairy producers would move to compliance with Russia's packaging laws.

Also on Friday, Putin said Gazprom had paid Belarus $650 million up front for the transit of Russian gas across the country's territory.

Source:

http://www.moscowtimes.ru/article/1009/42/378931.htm

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