February 1, 2006

Ukraine urges Russia to lift ban on meat and dairy imports
 

Ukraine's agriculture minister Monday threatened to start a trade war with Russia over its refusal to lift a ban on Ukrainian meat and milk imports.  

"We have enough levers," Agriculture Minister Oleksandr Baranovsky was quoted as saying by Ukrainian news agencies. "But all the same, we hope Russia will reconsider its decision."

Russia banned imports of Ukrainian meat and dairy products from Jan 20, citing violations of veterinary standards. Ukraine has called the move retaliation for its efforts to reclaim a number of disputed lighthouses on the Black Sea coast.

Ukrainian officials have tried for a week to have the ban lifted, so far to no avail. Baranovsky planned to travel to Moscow Monday for talks, but cancelled the visit after reportedly being told the Russians could not guarantee a meeting with his counterpart.

Prime Minister Yuriy Yekhanurov noted this when asked about when he planned to visit Moscow. Yekhanurov said there were no plans, adding "you see, our veterinarians cannot even manage to get in there".

The Russian ban has threatened to cause serious losses to Ukraine's agriculture sector, and further strain relations between the ex-Soviet republics.

Baranovsky said Monday Ukraine bought some US$355 million worth of agricultural products from Russia last year, and US$102 million worth of animal products. He noted trade wars never lead to anything positive, but said the option could not be ruled out.

Ukraine also planned to appeal to the WTO, the Agriculture Ministry said. Neither Ukraine nor Russia, however, are members of the WTO.