The Edict of the President of the RF V.V. Putin: impose veto on importation of agricultural products, raw materials and food. (2014-08-07)

In August 5, 2014 during the meeting of the President of the RF Vladimir Putin and acting Governor of the Voronezh Region Alexey Gordeev supporting the position of our Union concerning the necessity for imposing veto on importation of raw materials for the brewing industry, the President stated:

“Policy tools for putting pressure upon economics are unacceptable and contradict all norms and rules. So, the Government of the RF has already proposed counter measures in answer to EU sanctions. I think that in the current context we could well think it over in order to defend interests of domestic producers”.

It bears reminding that not long ago we received a request from the Government of the RF to give information about raw materials and equipment provision for the companies of the production chain “malting barley – beer” (http://barley-malt.ru/?p=10430&lang=en).  

The President of the RF said = The President done:

In August 6, 2014 The President of the RF signed the Edict “On Applying Special Economic Measures in order to Ensure Safety of the Russian Federation”.

The President of the RF believes that government bodies, federal public authorities, local government administrations, legal persons, organizations and individual persons being under the jurisdiction of the RF shall take into account that:

Within one year from the day on which this Edict enters into force, it is prohibited or limited to perform foreign economic operations covering import of certain agricultural products, raw materials and food to the territory of the RF by the country introducing sanctions.

It bears reminding that all countries of the European Community and also the USA, Canada, Japan, Australia, Switzerland, Norway, Montenegro, Iceland, Albania, Liechtenstein fell within the scope of the Edict.

Besides, the President of the RF entrusted the Government of the RF with a task to define a list of agricultural products, raw materials and food and also to develop and bring into effect a complex of measures directed to the increasing of domestic products.

What does the Edict of the President of the RF mean for the brewing industry of the RF?

“Limits will be introduced for raw materials that we can produce within the country as well as for unessential items for the brewing industry. These counter measures are rather delicate. Nobody will prohibit import of bananas and pineapples and as for malting barley, malt and hop they will be definitely included in the restrictive list. For our part, we promise to provide well-weighed and detailed informing of the Government of the RF and the Federal Service for Veterinary and Phytosanitary Surveillance about necessity for introducing limits on import of malting barley seeds, commercial malting barley, malt and hop and to form an exception list together with representatives of the business community,” A. Mordovin the President of Barley, Malt, Hops & Beer Union said.

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).

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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