OREANDA-NEWS. February 15, 2010. The Cabinet of Ministers of Ukraine intends to import 100kt of sugar beet from Belarus, imposing zero imports duty on that amount. The final decision is to be taken in the nearest future, while sugar imports contracted are to be delivered by May 2010.

Millennium Capital sees the news to be neutral, because it should not decrease significantly the internal sugar prices. In particular, the sugar price in Belarus is regulated by the Government and its export price will depend on the decision of the Belarus’ Cabinet of Ministers. Similarly to the situation that took place in August 2009, Belarus will most likely offer the sugar price above the market price level (USD 745 per tonn in London), which may reduce the domestic price of sugar by a mere 7% down to USD 980 per tonn.