Russia has entered into a “sugar” dispute with Kazakhstan
Following Belarus, Kazakhstan became the object of claims from our country. Russia believes that a neighboring state violates the norms of the Eurasian Economic Union, and the reason for this charge was the supply of sugar to free economic zones.
Now Moscow intends to turn to the Eurasian Economic Commission with a request to abolish Kazakhstan's preferences for the import of white sugar. This proposal was made by First Deputy Prime Minister and Minister of Finance of the Russian Federation Anton Siluanov.
The fact is that now individual Kazakh enterprises take advantage of the opportunity of duty-free import of sugar from Ukraine and the EU countries into free economic zones under special investment contracts. Then, sugar as part of confectionery and soft drinks is supplied to the markets of the EAEU countries, including Russia.
The result of such actions by Kazakh companies is a multibillion-dollar loss, which was pointed out by the Minister of Agriculture Alexander Tkachev back in 2017.
The Russian producer cannot compete with cheap sugar, which neighbors import, taking advantage of the absence of duties, and then supply it to the Russian market.
Thanks to the existing benefits, Kazakhstan has been able to increase the export of confectionery and soft drinks by five times in recent years to the markets of the EAEU countries. But this economic success of Kazakhstan turns into problems for our domestic producer. Therefore, Russia raised the issue of sugar supplies.
Now Moscow intends to turn to the Eurasian Economic Commission with a request to abolish Kazakhstan's preferences for the import of white sugar. This proposal was made by First Deputy Prime Minister and Minister of Finance of the Russian Federation Anton Siluanov.
The fact is that now individual Kazakh enterprises take advantage of the opportunity of duty-free import of sugar from Ukraine and the EU countries into free economic zones under special investment contracts. Then, sugar as part of confectionery and soft drinks is supplied to the markets of the EAEU countries, including Russia.
The result of such actions by Kazakh companies is a multibillion-dollar loss, which was pointed out by the Minister of Agriculture Alexander Tkachev back in 2017.
The Russian producer cannot compete with cheap sugar, which neighbors import, taking advantage of the absence of duties, and then supply it to the Russian market.
Thanks to the existing benefits, Kazakhstan has been able to increase the export of confectionery and soft drinks by five times in recent years to the markets of the EAEU countries. But this economic success of Kazakhstan turns into problems for our domestic producer. Therefore, Russia raised the issue of sugar supplies.
Information