In Ukraine came into force anti-dumping duties on imports of chocolate from Russia

© RIA Novosti / Stringreplace in photobacteria of the government of Ukraine in Kiev. Archival photoIn Ukraine came into force anti-dumping duties on imports of chocolate from Russia© RIA Novosti / Stringreplace the image Bank

Five-year anti-dumping duty size 31,33% for imports from Russia of chocolate and other finished food products with cocoa content from Tuesday enter into force in Ukraine.

In recent years, the volume of imports of chocolate from Russia to Ukraine decreased to a minimum. According to Russian experts, the restrictive measures will result in further loss of Russian confectioners in the Ukrainian market.

Dumping prices

The decision to impose anti-dumping measures against Russian chocolate for the protection of domestic producers a month ago, took the Ukrainian Interdepartmental Commission on international trade on the basis of the anti-dumping investigation for the period 2013-2015.

The Commission in its opinion stated that it had established the fact of imports to Ukraine of certain types of Russian chocolate at prices low relative to prices of national producers. The Commission concluded that the dumping prices of Russian chocolate «have caused significant harm to the national commodity producer».

In particular, the alleged decreased production volumes (by 7.63%), decreased sales volumes in the domestic market of Ukraine (of 20.85%), there was a significant deterioration in financial results from the sale of goods on the domestic market of Ukraine (on of 63.36%), decreased profitability of sales in the domestic market (by 26.42%), decreased capacity utilization (6,07%), increased inventory (by 23.77%), there was a reduction in the number of employees engaged in production of goods (by 11.06%).

According to the Commission, anti-dumping duties will affect Russian chocolate and other finished food products with cocoa content in blocks, slabs or bars filled with weight up to two kilograms; chocolate products with a cocoa content of chocolate candies with or without filling, as containing and not containing alcohol. Also introduces a duty on sugar confectionery and substitutes cocoa.

Imports may come to naught

According to the State statistics service of Ukraine, in 2015, the Russian Federation was the largest importer of chocolate in the country, putting the year-end product at $ 25 million. In 2016 the volume of deliveries fell sharply — to 399 thousand dollars.

Due to the deterioration of Ukrainian-Russian relations many international chocolate manufacturers who had previously supplied to Ukraine products from their factories in Russia have reoriented themselves and began to import goods from the factories in Europe, particularly from Poland.

According to the study of Russian expert of the Centre for research of the confectionery market (CICR), due to the introduction in Ukraine of the restrictions of the Russian confectioners in 2017 can lose 15-17 million sales.

«Ukraine had a significant volume of deliveries, and, according to the calculations of ZIKR, Russian pastry only at the end of 2017 can receive around 15-17 million dollars of sales», — announced the results of the research center’s Executive Director CICR Elizabeth Nikitin.

According to experts of ZIKR, the value entered Ukraine duty is of a prohibitive nature, which will mean a reduction of supplies of Russian of chocolate confectionery products in Ukraine. «Quickly recover such amounts from the Russian confectioners won’t be possible», — added in the review. On the other hand, analysts continue, the role of Ukraine in the export of Russian confectionery products in recent years has declined.

Response to the closure of the Roshen?

Some media drew a parallel between the decision of Ukraine about the introduction of anti-dumping duties and the news about the plans of the confectionery Corporation Roshen, owned by the President of Ukraine Petro Poroshenko to close the factory in Lipetsk.

In January it became known that Roshen intends to close production in Russia at «political and economic reasons.» According to the Corporation, «the seizure of the Lipetsk confectionery factory, imposed by the Investigative Committee of the Russian Federation in the framework of the criminal case, the sale of factory have done the impossible». As noted by the press Secretary of the President Dmitry Peskov, stop Lipetsk confectionery factory is a sovereign decision of the shareholders of the company.

In Ukraine came into force anti-dumping duties on imports of chocolate from Russia© Photo : an Account of the GPU in FacebookГП Ukraine asks Russia to extradite the former commander of «Berkut»Roshen — one of the largest world manufacturers of confectionery products, producing 450 thousand tons of products annually. The Corporation includes factory in the Ukraine, in Lithuania, Hungary and Russia. Poroshenko is putting forward its candidacy for President of Ukraine, promised in case of victory on elections to sell his main asset, but until that happens — selling the company engaged Rothschild, which in the context of the conflict in the East of Ukraine to find a buyer may not.

In Ukraine came into force anti-dumping duties on imports of chocolate from Russia© RIA Novosti, Infografiken sanctions against Russia and retaliatory measures