Barys Zhaliba: “Milk war” to hit exports

Professor Barys Zhaliba doesn't rule out the possibility of another round of the milk war.

He thinks yesterday's remark by the Russian deputy prime minister was a warning. Barys Zhaliba reminds about Arkady Dvorkovich's visit to Belarus and his threats to reduce oil supplies if Vladislav Baumgertner is not released, Zavtra Tvoey Strany writes.

“They did what Dvorkovich had threatened to do in spite of the visit of Rosneft CEO Sechin. We should take his words seriously,” the economist thinks. “When it comes to the 'union state' and the Customs Union, friendship is one thing, but work is another.”

Russian manufacturers say Belarusian companies set too low prices in comparison with Russian companies due to the preferences granted to the agricultural sector by the government.

“We may have another milk war and face non-tariff obstacles – quotas,” Barys Zhaliba forecasts.

The economist is convinced it will hit the Belarusian exports, which recently underwent changes in its structure.

“Oil products are still the main source of foreign currency earnings (30%). The second position is now occupied by milk and meat, which give 10%. Potash fertilisers give only 5.5%. So, milk is a very sensitive issue for us,” Barys Zhaliba says.

However, Belarusian milk cannot hope for European markets due to high standards.

“It's sad, but it's what we call orientation on one state's market,” the economist say.

We remind that Russia may take measures against Belarus to protect its milk market from unfair competition. The remark was made by Russian deputy PM Arkady Dvorkovich at the the fifth congress of the National Union of Dairy Producers.