After repeated accusations of Belarus in dumping of sugar supply to Ukrainian market, Belarusian sugar refineries established Ukraine Belarusian Agricultural Company (BAC). BAC will be the only supplier of sugar to the country and will sell it at prices not lower than in Ukrainian market, deputy chairman of Belgospischeprom Nicholai Antihevich said.
Belarusian Agricultural Company was registered in Ukraine in late February. Its founders were Gorodeya, Skidel, and Zhabinka sugar mills and Slutsk Sugar Refinery, said adviser on trade and economic issues of the Belarusian embassy in Ukraine Vasily Guschik, reports Kommersant-Ukraine.
The proposal of Belarusian side was a reaction to the repeated accusations of Ukrainian government in illegal import of cheap Belarusian sugar. Ukrainian authorities in this regard repeatedly threatened to restrict import of Belarusian products to its market.
«The question of withdrawal of Belarusian sugar from free trade with Belarus was almost resolved — restrictions on the supply may be introduced within a few weeks,» — said a top manager of a major Ukrainian sugar producers, who asked to remain anonymous.
According to Vasilii Guschik, Belarus agreed to create a single state importer to withdraw charges in dumped imports of sugar. «We will monitor the supply of sugar from Belarus, and identify the party of sugar sold at dumping prices, we will find out which of Belarusian companies, traders bought it at a plant in Belarus — then plant will not ship the sugar to the company», — said the representative of BAC Sergey Kononenko.
In the Ministry of Agrarian Policy of Ukraine and the Association Ukrtsukor do not comment the creation of BAC. To examine the issue representatives of Belgospischeproma and Agrarian Policy of Ukraine establish a mixed commission.
Currently, Belarus and Ukraine have a free trade agreement, which allows Belarus to import sugar to Ukraine without a fee. According to the association Ukrtsukor, last year an average price of ton of product on the Belarusian market was 100-160 dollars cheaper than in Ukraine. Belarusian sugar producers make sugar prices lower, annually importing about 600 tonnes of raw sugar duty free, which is an average of 100 dollars cheaper than sugar beet. This makes operation of substitution and export of cheap sugar possible. Belarus may import duty-free to Ukraine only beet sugar, import duty for raw sugar is 50% of the cost.
In 2008, the Ministry of Economy of Ukraine stated its intention to impose quotas on sugar imports from Belarus in connection with a large volume of deliveries. In 2007 it amounted to 9.4 thousand tons, whereas in 2009 — about 60 thousand tons.
