Sweet Life for Russians

The deputy presidential chief of staff Pavlo Haidutsky declared that the government intends to confront the internal dumping on the sugar market by making the Ukrainian sugar market a wholesale one.

Export of Ukrainian sugar may resume in a few weeks, but volume is unlikely to be high. The State Information and Analysis Center for Monitoring Foreign Trade Markets predicts a decline in export prices in Ukraine (until recently the prices were $350-360 per ton on DAF conditions, Ukrainian border). World prices on raw sugar and white sugar are $165 and $225 per ton respectively. First of all the price decline should take place because the sugar from the new harvest will appear on the market and because the present financial situation in Ukraine stimulates exporters.

Russia, which used to cover 90% of their sugar market with Ukrainian imports, does not show much demand for it now. Despite the existing agreement about a tax-free quota of 600,000 tons of Ukrainian sugar, Russia has already purchased a huge quantity of raw sugar.

However, according to the chairman of the Ministry of External Economic Ties section on bilateral cooperation with Russian Federation, Volodymyr Shevchenko, little hope has emerged. Russia introduced a season customs fee on sugar in addition to its 25% of the import fee: 20% on the white sugar and 74% on cane sugar. The Ministry of External Economic Ties thinks this will help sell up to one third of the quota.