Russia lifts limitations on Belarusian sugar :: Charter'97 :: News

Today Russia has lifted limitations on Belarusian sugar supplies within limits of the quota, director of Belarusian Sugar Company Dmitriy Kirillov told BelTA. In his words, the Federal Customs Service of the Russian Federation has signed an order to cancel the temporary storage of Belarusian sugar shipments at the Troyekurovskiy customs post. From now on Belarusian sugar will be shipped directly to customers.

Resolution No. 263 of the Russian Federation Economic Development Ministry has been rescinded and no longer regulates Belarusian sugar exports to Russia. Thus, the intergovernmental agreement signed in Minsk on March 23 has come into force. According to the document, the Belarusian side undertakes to export at most 180,000 tonnes of sugar to Russia in 2007 and at most 100,000 tonnes in 2008. The sugar will be shipped in equal monthly volumes and sold at wholesale prices equal to the wholesale prices set by Russian producers. All the four Belgospischeprom sugar refineries have been allowed exporting sugar — Skidel, Gorodeya, Zhabinka and Slutsk sugar refineries.

Belarusian and Russian producers now face equal sugar trade requirements. The Belarusian sugar producers have already divided the volume of shipments to Russian provinces and compiled a time schedule. The Belarusian side has completed preparing permissions with the help of the trade ministry.

However, it turned out the Russian side had failed to define all peculiarities of the border crossing procedure for Belarusian sugar shipments. Therefore, though the agreement was signed on March 23, the previous routines, according to which all Belarusian sugar was unloaded and checked for quality and origin, had been in effect.

Dmitriy Kirillov said, since March 23 ten wagons of Belarusian sugar or 6,380 tonnes have been shipped to Russia. Still five wagons of Belarusian sugar are staying at the temporary storage warehouse. The future destiny of the shipment has not been decided upon.

Chairman of Belarusian food industry concern Belgospischeprom Ivan Danchenko is now staying in Moscow. The negotiations are supposed to resolve the technicalities. Within two months the sides plan to ink an agreement on common principles of the cooperation for sugar production and trade in Belarus and Russia.

According to statistics published by Russian mass media, last year Russia turned out 5.8 million tonnes of beet and cane sugar, 3.4% more than in 2005. The country’s demand for sugar is estimated at almost 6 million tonnes. Experts believe, this year’s large sugar beet yield can result in sugar overproduction in Russia.