Russia threatens dairy import levy

RUSSIA / EUROPE – Russia threatened to impose restrictions on dairy imports from the European Union on Tuesday.

The warning was in response to an increase in grain import tariffs in the EU. Russian agriculture minister Alexei Gordeyev said: “Europe has erected barriers that have practically stopped Russian exports and have made us uncompetitive.” He added: “We intend to take adequate steps in relation to meat and dairy imports.” The Russian government has released no detail on the level or type of levy to be introduced.

On Monday, the EU revised its grain import tariffs. Two of Russia’s main imports are wheat and barley. European officials have denied that the grain tariff increases were aimed at Russia.

Also in Russia this week, French dairy firm Lactalis said that it will open the first phase of its 13.9 million euro processed cheese plant near Moscow in September. Currently, Lactalis controls around 1% of the Russian processed cheese market.

Finnish dairy firm Valio said on Monday that strong Russian sales helped it to double its profit for the first quarter. The company said profit for the three months was 12 million euro, up 50% on the same period last year.