Future of Ukrainian dairy industry is unclear

It is not seen how foreign trade will develop after signing of the Free Trade Agreement with the EU on June, 27. 

It is clear that milk will not flow from Ukraine to Europe from Monday, but it is not known how strongly Russia will try to limit purchases from Ukraine. After all, Russians somehow “worry” very much about future of Ukraine. Every possible experts constantly count the losses of our country after signing of the agreement.

In particular the ’Gridlock of integration struggle in Europe’ report, written by ex-Minister of Finance of Russia, forecasts that worsened relationship with Moscow will annually cost USD 33 bio for Ukraine. The calculations in the report are absolutely obscure. In particular, there are statements that our country will lose USD 15 bio only because of reduced export of meat. Where from are the figures are taken? Ukraine has never exported such big value of all agricultural products to all CIS counties together.

Other experts draw a picture of “success” which Ukraine will lose, if it refuses a membership in the Eurasian Economic Union.

The Kremlin actively frightens Kiev by economic sanctions. Vladimir Putin warned that the Customs Union will be actively protected from domination of Ukrainian products. He promised to enter the same import duties for them, as for products from the EU. It is not known yet when and if that will occur, but already from June, 30 the Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) will strengthen requirements to import of Ukrainian products of animal origin. The Ukrainian exporters will be compelled to make an additional attachment to the veterinary certificate, which will certify that the exported products were made according to the legislation of the Customs Union. In general, from Monday deliveries of Ukrainian dairy products (already not numerous) will stick on border with Russia again.

Source: infagro.com.ua

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