OREANDA-NEWS. The Government of Belarus has been working to streamline the price formation for meat and dairy products, Deputy Prime Minister of Belarus Andrei Kobyakov told deputies of the House of Representatives of the National Assembly of Belarus, reported the Official website www.government.by.

In his words, the simplest solution is to level the prices for meat and dairy products with those in Russia or Ukraine to equal the domestic prices with the prices at the foreign market. “But this will raise the issues of inflation and public incomes,” the Vice Premier said.

Along with that Belarus has an open border with the Russian Federation. A significant difference in prices for meat and dairy products in Russia and Belarus can provoke Belarusian people to take out meat to Russia for sale. “Therefore the Government has been working out the most optimal solution,” Andrei Kobyakov noted.

He also specified that the export prices for any product should not be much lower than the domestic prices. They can be lower only to the amount of VAT otherwise it can be considered as export subsidizing which is forbidden by the WTO and a special inquiry can be launched.