OREANDA-NEWS. October 21, 2010. This was announced by Director of Union of Sugar Producers of Moldova Raisa Bejan, noting that a letter from the Russian colleagues had been received recently, conveying their anxiety concerning the nonobservance by Moldova of the agreement on exchange of information about production volume, export and stock in trade.

According to Raisa Bejan, the full information to Russia can’t be provided because of the second largest sugar producer in Moldova Magt Vest (has two plants in Glodeni and Donduseni) that is not a member of the Union. Andrey Bodin, Chairman of the Board, Russian Union of Sugar Producers, noted that the Customs Union of Russia, Belarus and Kazakhstan, created in 2010, changed the framework conditions of sugar market functioning in Russia.

Now, the access of import goods for member countries of the Union is the issue of common agreement and the volume of Moldavian sugar deliveries may be revised. According to him, in conditions of Customs Union of Russia, Belarus and Kazakhstan, it will be difficult for Moldova to hold the volume of former export to Russia, as Belarus and Kazakhstan are carrying out the restructuring of sugar production facilities, build the new plants and have mapped out the area of own interests in some Russian regions that collaborated with Moldova before.

Russia is also investing in sugar sector (near USD 300 million during the last years) and plans to become fully self-sufficient. In 2010 the reach harvest of sugar beet is expected. According to estimates of the specialists, it will account for 800-850 thousand tons or 40 tons per 1 ha. This will allow producing 120 thousand tons of sugar or a record amount of sugar over the last years. Near 60-70 thousand tons of sugar are consumed on the internal market. Traditionally, the Moldavian producers export sugar to the EU countries and Russia.

The European Union provides Moldova with quota for export totaling to 22 thousand tons every year. Russia didn’t introduce such quotas yet. In 2004 the Unions of Sugar Producers of Moldova and Russia reached the agreements on free trade regime for sugar. Since that time the export of Moldavian sugar hasn’t exceed 30 thousand tons per year.

The experts believe that the threat of reduction of Moldavian export to Russia may be compensated by means of earlier stipulated increase of quotas for export to the EU countries (in 2011 – 26 thousand tons, in 2012 – 34 thousand tons). However this compensation isn’t enough to liquidate the consequences of double overproduction of sugar in Moldova.