Roshen may lose $200 mln in trade wars with Russia, expert says


Losses of the confectionery Roshen Corporation from the ban of its products in the Russian Federation could equal $ 200 million, Oleksandr Sokolov, director of analytics at Pro-Consulting told Ukrinform on Thursday.

"Based on the company's turnover figures of the previous year at USD 1.2 billion, as well as data on the size of product supplies to the Russian market, we can talk about possible losses at one sixth of the annual turnover of the corporation, provided there is a long ban," Sokolov said.

He noted that, given the experience of the previous bans from Russia on other Ukrainian foods, in the case with Roshen supplies will be "frozen" for a period of 3 months in the light of all checks.

According to the analyst, the likelihood of increased exports of the Ukrainian candy to the EU exists, but the success will depend on the duration of the Russian ban.

Earlier this week, Russia had imposed a ban on imports of Roshen confectionery products on the basis of examination results. Rospotrebnadzor explained that the Ukrainian Roshen sweets violated the norm of fat and organoleptic properties. Also, benzopyrene was found in milk chocolate - a first-class hazard substance. The "black list" includes four Roshen factories in Vinnytsia, Mariupol, Kyiv and Kremenchuk. Meanwhile, the results of checks conducted in Ukrainian independent laboratories deny this information.