Wednesday, July 22, 2009

Russia and Belarus, at it again

A trade war between Belarus and Russia looks increasingly likely. Following announcements a few days ago that Belarusian milk products may be 'reviewed for sanitary violations', the Russian government banned meat imports from several Belarusian producers. The Russian health watchdog group also stated that it will increase its inspections of meat and dairy imports from Belarus, raising the possibility of additional import restrictions. In a seemingly unrelated development, Belarus shut down a Russian diesel fuel pipeline due to structural defects. Of course, all of these policies could be justified. Given the two countries' recent trade spats, however, this is somewhat unlikely.

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