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20.03.2008

Minsk indignant at Moscow’s decision to ban grain delivery 25

13:56, — Economics

A temporal ban on grain delivery to the Customs Union countries has come in force. Russia has imposed this ban bewaring of re-export in conditions of low grain reserves in the country. Belarus was the first to react to this decision.

Minsk raised a protest to the “ally” and is ready to file a special note of the Ministry of Foreign Affairs in this connection.

Ban on wheat export to the Customs Union countries has come in force since 19 March and will remain on force till 1 May 2008. But the Russian Ministry of Agriculture promised to extend the export ban till 1 July, so it can’t be excluded that ban on any grain export to union countries will be enlarged.

As a correspondent of “Nezavisimaya Gazeta” was explained in the Belarusian Ministry of Agriculture, purchase volumes of Russian wheat are very insignificant for Belarus, “these volumes can be bought without loss in any country, even in Canada.” “We are indignant at another thing – union agreements are violated,” a Belarusian official explained to “NG.”

Earlier, the same evaluation of Russia’s actions was expressed by deputy minister of agriculture of Belarus Nadzeya Katkavets. “It’s bad that Russia has banned grain export to Belarus – not from the point of view of the Customs Union, but from the point of view of the Union State,” she said. As far as the minister knows, the Ministry of Foreign Affairs of Belarus filed the “proper note” to the Russian Government. The deputy minister emphasised Belarus needed about 120-150 thousands tons of wheat for its purposes this year, and Belarus has already bought most of the volume.

Belarus can’t grow flint wheat due to climatic conditions, so it needs to purchase flint wheat abroad to produce high-quality bread. But Belarusians officials hope to turn the country from an importer into an exporter of grain. Belarus imported about 250 thousands tons of wheat in 2006. Belarus purchased only 18 thousands tons from Russia, and the rest – from Kazakhstan, Ukraine, and Lithuania. Minsk planned to purchase only 100 thousands tons from other countries in 2007.

Temporal bans and restrictions on products export to the countries - members of the Customs Union are a common practice. For example, Minsk imposed restrictions on Russian beer import since 2003 to 2007, to “protect own brewing.” Belarus imposed and cancelled restrictions on import of flour, cereals and bakery goods from Russia. Kazakhstan also imposed temporal ban on fuel oil export to protect its market in 2005-2006.

Moscow doesn’t understand the indignation of the Belarusian authorities. As “NG” was explained in the Russian Ministry of Economic Development and Trade, “the Customs Union agreements allow to impose ban on export of product if there is danger of critical lack of these products on inner market, but corresponding consultations with interested parties should be carried out.”

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