BELARUS NEWS AND ANALYSIS

DATE:

14/11/2006

Belarus to Face Life Full of Sugar

Chiefs of Tatarstan, Bashkortostan, Orlov Region and Penza Region addressed Russia's Premier Mikhail Fradkov, urging him to introduce compensation duties on importing sugar from Belarus and toughen control over sugar supplies from that state. More likely than not, the address will accelerate imposing 8.1-percent customs duty on Belarus sugar for three years starting from 2007.

Leaders of Tatarstan, Bashkortostan, Orlov Region and Penza Region called on the government of Russia to establish order on national market of sugar. "The prices on domestic market of sugar are slumping. The price of producers lowered from 21 rubles/kg to 14 rubles/kg, i.e. below the prime cost of beet sugar," the leaders informed the PM through a letter.

According to regional authorities, the key reason of decline is "growing deliveries of white sugar from Belarus." "The import of Belarus sugar to Russia stepped up from 328,000 tons in 2002 to 401,000 tons in 2005." The amount would reach 500,000 tons, should no restrictive measures be taken.

Russia imported 2.139 million tons of raw sugar and 83,600 tons of white sugar from January to September of this year, according to Federal Customs Service. 2005 import amounted to 2.893 million tons of raw sugar and 144,000 tons of white sugar. But the data doesn't take into account the sugar of Belarus.

The timing of regional leaders' address is perfect. In late October, Economic Development and Trade Ministry of Russia submitted to cabinet the draft ruling, which suggests introducing compensatory duty on import of Belarus' sugar in amount of 8.1 percent of the customs value but no less than $39.5 per a ton.

Source:

http://www.kommersant.com/p721310/r_528/Sugar_import_duties/