18:46 10.07.2013

Ukrainian confectioners to ask Cabinet to prevent Russia's introducing special duties on chocolate

2 min read

The Ukrkondprom association is intending to appeal to the government of Ukraine asking to prevent the Russian Federation's introducing special duties on imports of chocolate and chocolate produce in response to Kyiv's introducing import duties on cars.

"The state must take into account the interests of all sectors. Therefore, of course, we will appeal to the government asking to respond to this issue [the introduction of special duties on chocolate]," Association President Oleksandr Baldyniuk has told Interfax-Ukraine.

According to him, there is tough competition on the Russian confectionery market, and even under a slight increase in prices Ukrainian producers will not able to meet it. At the same time, Ukraine's position on this market has been quite influential so far: for instance, Ukraine in 2012 delivered 111,000 tonnes of chocolate and chocolate produce worth $376 million to Russia.

"It is obvious that this will affect the confectionery industry in Ukraine. Certainly, we will not have profit, as a result the state will not receive taxes, our sales will fall as the price of goods will be higher," Baldyniuk said.

However, he failed to estimate the possible losses of Ukrainian confectioners.

As reported, on July 9 Russia announced the plan to introduce retaliatory duties on imports of chocolate and chocolate produce, float glass and coal from Ukraine.

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