April 19 2002, 17:32 Vedomosti

Wheat and barley discrimination

Vedomosti reported that Russian grain market analysts believe Russia and Ukraine will suffer from new EC import duty rise as of Apr 16 because the lion's share of imports to EC today comes from aforementioned countries.

Analysts believe that new duties may significantly complicate if not totally destroy Russian and Ukrainian wheat and barley imports into Europe.

Since July 2001 through Feb 2002 Russia shipped to EC 700,000 MT of wheat and some 200,000 MT of barley whereas Ukraine reached 2.5 mn MT level in terms of wheat. Now once wide open market closed its doors.

Alexei Ivanov, the director general of Razguliai Zerno commented that this move of EC is not part of free trade concept and contradicts the principles of market economy. His company exported 300,000 MT of both barley and wheat to EC this season.

Leonid Cheshynskiy, the RosKhlebProdukt governor said that Russian companies would appeal to the government asking for adequate reciprocal measures. "On the one hand we are invited to the WTO but on the other hand they slam the doors for their markets in our face."

Adequate measures may include reaction on mad cow disease problems in EC and any time imports of beef from EC may be banned.