OREANDA-NEWS. August 15, 2014. According to the Union of sugar producers of Moldova (UPZM), the same share of deliveries in the total export volume of sugar to Russia was registered in 2010. For comparison, in 2011-2013 Russian share in the export of sugar amounted to 19.9%, compared to 12.1% and 6%, respectively.

At the same time, according to UPZM, the statistics of the last few years may not be representative of the situation in general. "In 2013, the Moldovan sugar was exported mainly to the EU, where at that time was a favorable environment, which allowed them to sell sugar to profitability. The crop of 2013 amounted to 143 thousand tons, so the export potential has increased, and before August 1, 2014, when Russia announced the withdrawal of sugar from the agreement with Moldova on the free trade, the Moldovan sugar producers exported to Russia 51.7 thousand tons of sugar.

At the same time, the European quota of 2014 will be also used by the sugar producers depending on the conditions at the European markets," the statement stresses. UPZM notes that in the current year it is planned to produce about 170 thousand tons of sugar, 37.4 thousand tons of which sugar producers are planning to export to the EU market under the quota for duty-free imports of that product, and another 65 thousand tons of sugar (amounting to 650 million lei) Moldovan sugar producers planned to send to the Russian market. "Introduction of standard customs duties on Moldovan sugar in the amount of USD340 per 1 ton by Russia makes it uncompetitive at the market.

According to the contracts with the producers of sugar beet, sugar producers are obliged to buy the entire crop without a significant price reduction (estimated reduction will not exceed 12-15%).

Therefore, the cost of excess sugar will remain high, which will lead to economic losses on its sale at the stock markets, where the price is formed by the cane sugar," – UPZM noted, stressing that in this case, according to preliminary estimates, the direct losses of the Moldovan sugar producers can reach 230 million lei.