Identifier
Created
Classification
Origin
06MINSK456
2006-04-27 09:57:00
UNCLASSIFIED
Embassy Minsk
Cable title:
Belarus to Export Sugar to Cuba
how-toVZCZCXYZ0007 RR RUEHWEB DE RUEHSK #0456 1170957 ZNR UUUUU ZZH R 270957Z APR 06 FM AMEMBASSY MINSK TO RUEHC/SECSTATE WASHDC 4305 INFO RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE RUEHUB/USINT HAVANA RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RHMFISS/HQ USEUCOM VAIHINGEN GE RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
UNCLAS MINSK 000456
SIPDIS
(C O R R E C T E D COPY (TAG AND SLUG LINE ADDED)
SIPDIS
STATE PASS USDA
E.O. 12958: N/A
TAGS: ECON ETRD PREL USTR EAGR CU BO
SUBJECT: Belarus to Export Sugar to Cuba
UNCLAS MINSK 000456
SIPDIS
(C O R R E C T E D COPY (TAG AND SLUG LINE ADDED)
SIPDIS
STATE PASS USDA
E.O. 12958: N/A
TAGS: ECON ETRD PREL USTR EAGR CU BO
SUBJECT: Belarus to Export Sugar to Cuba
1. Belarusian Prime Minister Sergey Sidorsky led a delegation of
GOB officials and state-owned businesses to Cuba April 20 to 23.
In addition to the usual exhortations of fraternal socialist
comradeship, in a deal only possible between two command economies
Belarus agreed to import 100,000 tons of raw Cuban sugar this year,
process it in Belarus' four state-owned sugar refineries, and send
the sugar back to Cuba. In other deals the Minsk Automobile Plant
(MAZ) will sell to Cuba six cranes, worth Euro 470,000, Minsk
Tractor Works (MTZ) will sell 100 MTZ-80 agricultural tractors, and
other Belarusian companies wi,l supply dried milk, butter, more
sugar, fabric and clothes. Sidorsky also announced that Belarus
hopes to use Cuba as a middleman for supplying potassium
fertilizers to other Latin American countries. [Note: Belarus
already sells large amounts of potash to several Latin American
countries, particularly Brazil.]
2. In 2005, trade between Belarus and Cuba fell 44.9% from the year
before to USD 20.3 million. Belarusian exports to Cuba nearly
dgubled to USD 13.2 million, mostly trucks and tractors, while
Cuban exports fell 76.3%, mainly because sugar exports to Belarus
fell four times from 2004 levels.
Russia Pressing Belarus on Sugar Exports
--------------
3. Separately, under union state agreements, Belarus can export
beet sugar to Russia duty free, but must pay USD 340/ton on exports
of cane sugar (Belarus has no sugar cane fields, but imports sugar
from Cuba and Brazil). In 2005 Russia's Union of Sugar Producers
(RUSP) convinced the GOR to launch an investigation into Belarusian
sugar exports. RUSP argued that Belarus was exporting large
amounts of cane sugar to Russia, but labeling it as beet sugar to
avoid tariffs. According to press accounts, as of August 1, 2005,
Belarus had exported 395,000 tons of "beet" sugar to Russia. This
sugar sells in Russia for 10% less than does Russian-produced
sugar. However, from January-September 2005, Belarus' four sugar
refineries (all state-owned) had produced 464,100 tons of cane
sugar but only 87,400 tons of beet sugar. While the GOR's
investigation continues, in November Russia's Ministry of Justice
ordered that Belarusian sugar could only be imported to the
Troekurovsky customs station in Moscow. Minsk retaliated by
placing a similar condition on imports of televisions produced in
Kaliningrad.
KROL
SIPDIS
(C O R R E C T E D COPY (TAG AND SLUG LINE ADDED)
SIPDIS
STATE PASS USDA
E.O. 12958: N/A
TAGS: ECON ETRD PREL USTR EAGR CU BO
SUBJECT: Belarus to Export Sugar to Cuba
1. Belarusian Prime Minister Sergey Sidorsky led a delegation of
GOB officials and state-owned businesses to Cuba April 20 to 23.
In addition to the usual exhortations of fraternal socialist
comradeship, in a deal only possible between two command economies
Belarus agreed to import 100,000 tons of raw Cuban sugar this year,
process it in Belarus' four state-owned sugar refineries, and send
the sugar back to Cuba. In other deals the Minsk Automobile Plant
(MAZ) will sell to Cuba six cranes, worth Euro 470,000, Minsk
Tractor Works (MTZ) will sell 100 MTZ-80 agricultural tractors, and
other Belarusian companies wi,l supply dried milk, butter, more
sugar, fabric and clothes. Sidorsky also announced that Belarus
hopes to use Cuba as a middleman for supplying potassium
fertilizers to other Latin American countries. [Note: Belarus
already sells large amounts of potash to several Latin American
countries, particularly Brazil.]
2. In 2005, trade between Belarus and Cuba fell 44.9% from the year
before to USD 20.3 million. Belarusian exports to Cuba nearly
dgubled to USD 13.2 million, mostly trucks and tractors, while
Cuban exports fell 76.3%, mainly because sugar exports to Belarus
fell four times from 2004 levels.
Russia Pressing Belarus on Sugar Exports
--------------
3. Separately, under union state agreements, Belarus can export
beet sugar to Russia duty free, but must pay USD 340/ton on exports
of cane sugar (Belarus has no sugar cane fields, but imports sugar
from Cuba and Brazil). In 2005 Russia's Union of Sugar Producers
(RUSP) convinced the GOR to launch an investigation into Belarusian
sugar exports. RUSP argued that Belarus was exporting large
amounts of cane sugar to Russia, but labeling it as beet sugar to
avoid tariffs. According to press accounts, as of August 1, 2005,
Belarus had exported 395,000 tons of "beet" sugar to Russia. This
sugar sells in Russia for 10% less than does Russian-produced
sugar. However, from January-September 2005, Belarus' four sugar
refineries (all state-owned) had produced 464,100 tons of cane
sugar but only 87,400 tons of beet sugar. While the GOR's
investigation continues, in November Russia's Ministry of Justice
ordered that Belarusian sugar could only be imported to the
Troekurovsky customs station in Moscow. Minsk retaliated by
placing a similar condition on imports of televisions produced in
Kaliningrad.
KROL