March 3 2003, 11:39 Interfax

Russia's meat import quotas do not apply to Ukraine

Introduced by Russian government quotas on imports of cattle and pig meat do not apply to Russia, President of Russia's Meat Union Musheg Mamikonyan said, commenting on the declaration of Ukraine's Deputy Prime Minister Ivan Kyrylrnko that Ukraine would claim from Russia to be granted an individual quota for meat export, Interfax news agency has informed.

Mr. Kyrylenko had most probably been misinformed about the procedure of Russian meat quotas application, Mamikonyan said.

He said on February 28 he had talked on the issue with some deputies of Ukrainian Verkhovna Rada and had explained them all the details concerning the new Russian customs regime.

"They stopped worrying when they'd understood they'd be able to supply their products without restrictions", he said.

Mamikonyan believes introduction of quotas will produce positive effects on Russian-Ukrainian beef and pork trade, and also on formation of single agricultural and food market, in the light of the latest agreements between Russia, Ukraine, Belarus and Kazakhstan about establishment of the single economic space. The Head of the union forecasts that the meat trade turnout between the two countries might double as early as within the first half-year.

According to the Institute of Agrarian Marketing data, during the last three years Ukraine has been responsible for over 20 percent of Russian meat imports. In 2002 Ukraine supplied to Russian Federation some 115,000 tonnes of beef, bringing its share in Russian import to 24 percent.

Contract price for Ukrainian beef in 2002 on average was $1.44 per kilo, being is 30 percent higher than prices for the product, brought from outside the CIS. Ukrainian beef was sold in Russian market at prices, close to the prices of Russia's domestic producers.

As it has already been reported, Russia introduced quotas for imports of 315,000 tonnes of beef and 337,500 tonnes of pork this year. 90 percent of the quota will be distributed according to the historical principle (to companies already involved in the business, proportionately to their contribution in earlier years) and 10 percent is going to be sold through an auction.

The quotas will take effect since April 1.