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Ukraine PM Seeks to Limit Food Exports

Source: Reuters
14/05/2008

Kiev, May 13 - Ukraine's Prime Minister Yulia Tymoshenko said on Tuesday she wants to adopt measures to restrict food exports in a bid to overcome high inflation.

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"We will withhold key food products in Ukraine which have to ensure our food balance," Tymoshenko told a news conference.

She did not clarify commodity exports could be restricted. Ukraine, a leading European food producer virtually banned grain exports in the second half of 2007 and introduced export quotas for the second part of the current season.

Ukraine's grain exports fell to about 2 million tonnes so far this season compared with a total of 10 million sold abroad in 2006/07.

Earlier this year, traders voiced concern that the government could extend export limits for the next 2008/09 season, despite a big grain harvest expected this year and large stocks.

The government has also restricted sunflower oil exports until July 1, 2008. At least 12 sunflower oil plants have suspended production due to limits and the sunoil exports had fallen 13,580 tonnes in April from 127,000 in March.



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