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Govnt ministries oppose each other on quotas 22 Jan 2010
Two Russian ministries are in disagreement regarding how to handle meat import quotas.
By Evgen Vorotnikov
The Russian Ministry of Economic Development Russia opposes the recent proposal of the Federal Antimonopoly Service (FAS) on the distribution of meat import quotas through auctions in 2011, said Alexei Likhachev, the Director of the Department for Review and Regulation of Foreign Economic Activities.
According to Likhachev, starting the selling of quotas through the auction will not improve the situation in the Russian meat market, but would instead lead to higher prices. Likhachev said that selling even 30% of quotas will trigger massive price increase and the expansion of foreign producers.
Meanwhile most of the Russian believe that the largest US and Brazil producers could pose a major threat to the Russian market, due to their ability to buy all the quotas and to start massive supplies of cheap meat to the country.
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