Leanid Zlotnikau: We are facing serious economic difficulties :: Charter'97 :: News

Russia turned down the Belarusian proposal of extra 30 thousand ton delivery of sugar in addition to the amount stipulated by the intergovernmental agreement. Furthermore, it has become known today that the negotiations held by Belarus on exporting sugar beet to Ukraine are doomed to failure. “Today our sugar refineries which are targeted at producing sugar to be sold in Russia are facing serious economic problems”, the situation with the Belarusian sugar production is commented by the economist Leanid Zlotnikau in his interview to the Charter’97 press office.

Previously Belarus promised to decrease its sugar deliveries to Russia in 2007 down to 180 thousand tons and in 2008 down to 100 thousand tons. Those volumes were fixed by the intergovernmental agreement signed 23 March this year in Minsk. ”The restrictions on the Belarusian sugar import were supposed to be temporary. The minister for agriculture of Russia then remarked that in two years the Belarusian sugar was to become uncompetitive. And it really occurred so that Russia managed to improve the sugar refining industry considerably. For 5 moths this year the sugar production in Russia has increased by 140% if compared to the last year similar period”, Leanid Zlotnikau declares.

According to the expert, our positions at the Russian market are not promising. The same can be said about the Ukrainian market. “The southern sugar output is characterized by high sugar content. Moreover the Ukrainian sugar refineries are mainly privately owned and thus more effective”, Zlotnikau remarked.

“The restriction imposed by Russia resulted in decreasing of the Belarusian export almost by 50%. The output volume has also decreased. If previously the major part of locally produced 500 thousand ton sugar was exported to Russia, now we can rely only on our own limited market. Today our sugar refineries which are targeted at producing sugar to be sold in Russia are facing serious economic problem as the borrowings were made for the manufacture re-equipment which now have to be repaid but now the repayment is feasible only in sugar”, the expert concludes.