The system of import substitution for Russian brewing industry – instructions have been got. (2014-07-16)

According to the request of the Government of the RF to provide information on the situation with raw materials and equipment provision for the production chain “malting barley – beer” and taking into account the Government strategy focused on the development of import-substituting production, the President of the Union A. Mordovin noted:

“If any product is made in the territory of the member states of the Eurasian Economic Union in sufficient volumes for domestic consumption and available import volumes of the mentioned product exceed all reasonable limits or there is a risk of necessity for import due to price dumping, we shall introduce an operative/non-flexible system of import substitution and protection of the domestic market. If a product is not produced at the territory of Eurasian Economic Union or its volumes can’t be increased within the shortest period of time but there is possibility to set up production and the need for the mentioned product is covered due to import, it is necessary to develop a flexible system of import substitution”.

According to the strategy of the Government of the RF and taking into account the fact that “the country has really got hooked on import,” Dmitry Medvedev, the Prime-Minister quoted, our Union was charged with a task to study variants for decreasing dependence on import supplies for the brewing companies being one of the basic Russian consumers of foreign products (raw materials and equipment) in order to switch the industry to domestic production.

It is worth noting that Eurasian Economic Union and the Department for Foreign Trade Protection have already developed practical mechanisms for limiting import goods. Moreover, some countries of the Eurasian Economic Union imposed restrictions on import (a typical example is the Republic of Belarus. They introduced a ban on import of malting barley and malt varieties that are produced within the country).

So, we consider necessary to introduce limits/absolute prohibition on import of the following agricultural products:

– malting barley seeds (exclusion is possible for varieties that are not produced in the country);

– hop (exclusion is possible for varieties and derivative products that are unequalled);

– commercial malting barley (exclusion is possible for varieties that are not produced in the country);

– brewers’ malt (exclusion is possible for varieties without equals).

In addition, the Union has to collect information and study questions concerning the necessity/lack of necessity for introducing flexible or non-flexible systems of import substitution towards the following items: brewing plants, equipment and materials for brewing industry.

Interested companies of the RF, the Republic of Belarus and Kazakhstan producing raw materials, equipment and other goods are welcome for a dialogue.

Regardless of whether you produce equipment for brewing plants or tools lubrication for filling lines, we are sure that we shall support and protect a domestic producer, forming proper mechanisms for import substitution, taking into account membership of the RF in WTO.

In order to respect interests of producers as well as importers of goods for the production chain “malting barley – beer”, especially for unequalled items/not produced within the country, we are ready to consider reasoned statements concerning the necessity for import of the product to the customs territory of the member states of the Eurasian Economic Union.

The final statement of our Union regarding import substitution shall be formulated before the end of August 2014 and early September it will be given to the Government of the RF, Eurasian Economic Commission and the Ministry of Agriculture of the RF.

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