E-Malt.com News article: Ukraine & Belarus: Ukrainian brewers see import restrictions in Belarus as discriminating

Ukrainian breweries believe that restrictions placed by Belarus on beer imports from Ukraine are discriminating, Interfax-Ukraine reported on January, 18.

As already reported, currently supplies of Ukrainian beer to Belarus have been suspended due to the country's actions.

From December 31, 2010 Belarus not only introduced single-use licenses for imports of beer from Ukraine, but also demanded that Ukrainian breweries increase their beer prices.

"The increase of the price of Ukrainian beer proposed by Belgospischeprom violates market conditions and makes impossible the work of Obolon Company on the market. The said actions are of a discriminative character and give a chance for other foreign producers to expand their presence on the Belarusian market," reads a press release of Kyiv-based Obolon, one of the largest breweries in Ukraine.

The company said that in November 2010 Obolon again proposed to increase prices by 9%, although Belgospischeprom on December 20, 2010 demanded they be increased by 30%, and on January 6, 2011 – by 64%.

Obolon said that the price of its beer in Belarusian retail chains is 10-15% higher than Belarusian beer.

"The facts do not indicate that the price of Obolon beer is underestimated. Any accusations of dumping or the violation of trade conditions are groundless," reads the report.

Obolon also refutes Belgospischeprom concern's statements that Ukrainian beer is pushing Belarusian producers out of the market.

"According to market indicators, the Ukrainian beer share of the Belarusian market does not exceed 7%, while beer imported from Russia occupies over 15% of the market. Belarusian producers control over 77% of the market," reads the release.

JSC SUN InBev Ukraine, which is among top three largest breweries in Ukraine, said that the company signed a protocol on setting minimum prices of malt beer in an annex to an agreement with Belgospischeprom. The company does not say if it has managed to resume beer supplies to Belarus.

"We've signed the agreement under unfavourable terms for us, so as not to let down out distributor partners in Belarus," reads a company press release. However, the prices were not disclosed.

SUN InBev said that in August 2010 Belgospischeprom reported that it plans to introduce the licensing of Ukrainian beer imports. The company then said that the measure would be a discriminative one if the licensing were applied only to Ukrainian beer.

SUN InBev said the Belarusian market is rather important for the company, as the export share to the country of the company's total exports is high, and in 2009 it was 29.6%.

"The change of the imports conditions would affect the exports income of the company and its position on the Belarusian market," reads the report.

The company believes that in long term outlook the said policy of Belgospischeprom could lead to negative after-effects for the Belarusian beer market, as excessive protection of local producers would lead to a reduction of the competitiveness of their products and restrict Belarusian consumers.

As reported, single-use licenses for the import of beer from Ukraine will be issued by the Ministry of Trade in coordination with the Belarusian state-run Belgospischeprom concern.

Belgospischeprom should in turn accept applications for licenses for the import of beer only if there is an agreement signed by the concern and a Ukrainian beer producer on the conditions of import of beverages to Belarus. The agreement should stipulate the minimum prices of imported beer and foresee that the beer is sold at prices that are not lower than the minimum ones.

Belgospischeprom Chairman Ivan Danchenko earlier said that Belarus would cut the share of imported beer on the domestic market to 5% from the present 30% in the next five years.


19 January, 2011