Expert: embargo against Ukraine will affect manufacturers of chocolate in Russia

Expert: embargo against Ukraine will affect manufacturers of chocolate in Russia

Russian manufacturers of chocolate products can feel the significant impact of restrictions on the import of confectionery products to Ukraine, said the representative of the Centre for research confectionery market Elizaveta Nikitina.

MOSCOW, 20 Jan. Restrictions on imports of confectionery products to Ukraine will affect primarily the manufacturers of chocolate products of the Russian Federation, because they accounted for the bulk of the Russian exports of sweet products in the country, said the Executive Director of the Russian Center of research of the confectionery market (CICR) Elizaveta Nikitin.

Russia from the beginning of 2016 banned the import of Ukrainian meat, sausages, fish and seafood, vegetables, fruits, dairy products. In response, Kiev has approved a list of 43 headings: a ban were baked goods, meats, cheeses, chocolate, beer, vodka, cigarettes with filter, food for dogs and cats and other goods. In addition, under the ban got the equipment for Railways and tramways and diesel-electric locomotives.

On Wednesday the Deputy head of the Ministry of economic development and trade of Ukraine Nataliya Mykolska said that Kyiv said the list of prohibited to import Russian goods, adding to it the lines of vegetables and include the sauces and ketchups, some species of fish and confectionery.

Volumes of supplies

“The largest volume, which Ukraine bought, is chocolate products. Last year Russian exports of confectionery products and has dropped so much. And export of chocolate products in Ukraine fell in four times in the first nine months of 2015 compared to the same period last year, with 5 to 20 thousand tons”, — said Nikitin.

“In Russia, and so reduces the consumption of confectionery from the crisis. Consumers refuse such products in favor of more necessary goods in the first place. Therefore, our producers now have a hard time. And additional factors that affect the decline in sales, will only aggravate the situation,” she added.

According to her, the main Russian manufacturers of chocolate, which exported its products to Ukraine, located in the Central Federal district of the country and in the Volga region. But the main importers of Russian products are CIS countries. But in these States also saw a decline in consumption of confectionery products for the same reasons as in Russia, so Russian manufacturers will be difficult to increase exports to these countries, said Nikitin.

Russia from 1 January 2016 introduced against Ukraine food embargo for countries that supported sanctions against Russia. In turn, Kiev has stated that it is considering filing a WTO action against Russia due to the introduction of predamage. At the same time, Ukraine also imposed against Russian retaliatory sanctions on a number of commodities that will last until August 5, or to cancel predamage on Ukrainian goods.