Russian consumer rights’ watchdog bans import of Ukrainian candies

Russia’s consumer rights’ watchdog has imposed a ban on import of confectionary products made by Ukraine’s candy giant Roshen. Rospotrebnadzor claims quality and safety of goods produced at Roshen’s four confectionary plants in Kiev, Vinnitsa, Mariupol and Kremenchug. The Russian consumer rights’ watchdog has already repeatedly banned products of Ukraine’s food makers. In February 2012 it imposed a ban on the import of Ukraine’s cheese. After certain arrangements supplies resumed. “Of late the quality of confectionary products imported from Ukraine have raised our great concern,” Russian chief sanitary doctor Gennady Onishchenko said earlier. “First of all, this concerns Roshen’s candies.” Meanwhile, Roshen hasn't received any official notification from Rospotrebnadzor about the ban of its products' supplies to Russia. “We’ve not received an official document yet,” the report says. Russian authorities also discussed restrictions on the import of Ukraine’s confectionary products in the form of special duties. Thus, in early July it became known that Russia plans to introduce special import duties on Ukraine’s chocolate, coal and glass in retaliation to Ukraine’s car import duties. Russia sent a notification to the World Trade Organization stating that Ukraine’s car tax will affect Russia’s car exports by $328 million and will inflict losses of $36 million in taxes. To compensate for these losses Russia reserves the right to collect duties equaling 0.1 euro per 1 kg of Ukraine’s chocolate, 54 percent for the import of coal and 15 percent - for the import of glass. These duties may enter into force soon after they are finalized with other members of the Customs Union - Kazakhstan and Belarus. Ukraine’s Ministry of Revenues and Duties said in 2012 Ukraine’s candy producers exported 119,100 tons of chocolate goods worth of $413 million to the Russian market. At the same time Russia exported to Ukraine 27,800 tons of chocolate candies worth $102.7 million. The head of Ukraine’s confectionary producers’ association Ukrkondprom, Alexander Baldynyuk, said Russia remains one of the major markets for Ukraine’s confectionary companies; therefore effects from the introduction of this duty can be rather significant. Ukraine’s confectionary corporation Roshen is one of the world’s biggest candy producers. As of 2013 it has ranked eighteenth in the list of Candy Industry’s Top 100 candy companies. Roshen produces over 200 confectionary items. It has its offices in Baltic states, Hungary and all over Ukraine.