BELARUS NEWS AND ANALYSIS

DATE:

22/11/2006

Belarus, Russia In Trade War Over Sugar

Ivan Danchanka, head of the Belarusian Food Industry Concern, complained to journalists in Minsk on November 21 that the Russian Customs Service is blocking Belarusian sugar exports to Russia for "unclear reasons," Belapan reported. Also on November 21, Belarusian Railways spokeswoman Tatsyana Bondarava said that more than 350 railway cars loaded with Belarusian sugar are standing idle in Russia and Belarus because of the blockade. According to Russian media, Russian sugar producers accuse Belarus of covertly exporting sugar made from imported raw cane sugar instead of the product refined from domestic sugar beets. Belarus is exempt from paying duty on the export of domestically refined sugar to Russia, whereas sugar made from imported raw cane sugar should be subject to duty of $340 per ton. In addition, Belarusian sugar, which is subsidized by the government, is $50 cheaper per ton than Russian sugar. According to some estimates, because of such unfair trade practices on the part of Belarus, the Russian sugar industry's losses between 2002 and 2005 amounted to more $500 million. JM

Source:

http://www.rferl.org/newsline/2006/11/3-cee/cee-221106.asp