Belarus starts fighting baby food from Russia

Russian suppliers of baby food complained about the decision of the Belarusian authorities to limit the mark-up on imported products to 15 percent. They argue that this level does not cover promotion costs, which is why some companies have already had to stop deliveries, writes Kommersant.

The Rusbrand association turned to the Ministry of Economic Development on behalf of 85 percent of baby food manufacturers working in Russia. She asked either to have all restrictions removed or to replace the margin with profitability.

The maximum markup for infant formula, mashed potatoes, cereals, drinks and other goods was set by the Ministry of Antimonopoly Regulation and Trade (MART) of Belarus. The reason for the start of the struggle with prices is the desire to maintain the availability of vital products for the population.

For a year, Russia supplies to Belarus about 5.5 thousand tons of baby food worth 1.4 billion rubles. Rusbrand executive director Alexei Popovichev noted that foreign products in this category are in demand in the republic, unlike other basic products.

The source of the publication in one of the major manufacturers confirmed that the company completely stopped supplies to Belarus until the issue is resolved. PepsiCo said that it supports Rusbrand’s position on supplies to the republic.

The Ministry of Economic Development can either try to solve the problem at the interstate level, or bring it to the level of the Eurasian Economic Commission (EEC). The office of the latter indicated that consultations on the introduction of state regulation of prices for certain goods by Belarus will be the reason for discussion on February 2.

On the eve, the Russian government approved an agreement on the transportation and transshipment of oil products from Belarus through Russian ports. Let this become much more expensive for Minsk than deliveries through the Baltic states, so Russia can provide financial assistance.

/Media reports.