OREANDA-NEWS. January 18, 2011. Ukrainian brewing companies have requested the Cabinet to introduce licensing of Belarusian beer import in Ukraine in response to Belarus’ licensing of Ukrainian beer imports, Director of CJSC Obolon office in Belarus Alexei Bolily stated.

“As a result of the introduction of licensing of Ukrainian beer, its price in Belarus rose 50%-60%. Ukrainian producers yesterday applied to the Cabinet with a proposal to reciprocate,” Bolily said.

Because of the new rules, Ukrainian makers have not yet been licensed to supply beer to Belarus in 2011.

“Ukrainian breweries first need to conclude an agreement with Belgospischeprom concern over the terms of supplies to Belarus. The problem is that the agreement must set minimum prices, which prove to be quite high,” Bolily said.

Ukraine sought to have the terms of trade with Belarus adjusted during negotiations, but it was unsuccessful.

An official in Belgospischeprom explained that the introduction of licensing of Ukrainian beer imports created equal price conditions for Belarusian and Ukrainian makers: Ukrainian beer prices are set at the level of prices applied to Belarusian beer.

According to the representative of the Ukrainian side, the conditions cannot be considered equal for Belarusian and Ukrainian makers, because the former use a system of discounts, which cheapen the products, and are free from exchange risks. Bolily also noted that the rise in the selling price would result in additional currency outflows from Belarus, adequate to the increase in prices.

Belarus introduced licensing of beer import from Ukraine for the period January 1, 2011 through December 31, 2012. The Council of Ministers signed relevant resolution #1860 dated December 21, 2010.

Licensing is introduced to control the performance of commitments of Ukrainian companies regarding the minimum selling price on the Belarusian market.

In January-November, beer import from Ukraine rose 11.5% on the year to 4.068 million decaliters, worth USD 15.969 million, up 13.2%.