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Milk War

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This article is about the 2009 Belarus–Russia trade dispute. For the DC Comics crossover, see Milk Wars.
Milk War

The flags of Russia (left) and Belarus (right) flying together.
Date6–17 June 2009
Location
Union State
Result Russia lifts Belarusian dairy ban
Belligerents
 Russia  Belarus
Commanders and leaders
Vladimir Putin
Gennady Onishchenko		 Alexander Lukashenko

The Milk War was a trade conflict between Russia and Belarus in June 2009. Russia and Belarus have close relations and the conflict stemmed from Russia allegedly attempting to pay Belarus $500 million to recognize the independence of Abkhazia and South Ossetia. Russia also expressed its interest in privatizing the Belarusian milk industry. Belarus responded by seeking negotiations with the European Union on certifying Belarusian milk according to EU regulations. Russia then banned the import of dairy products from Belarus, citing alleged health concerns. The trade conflict ended on June 17, 2009 when Russia announced that it would lift the ban.

Russia threatened another Milk War in 2013, and has reimposed temporary bans on Belarusian dairy products in June 2017 and 2018–2019. Russian concerns include Western sanctions that supposedly allow Belarus to take advantage of the market by producing products of inferior quality. In turn, Belarusian producers claim that Russia has imposed harsh obstacles on them. Belarus has objected to these trade wars, stating that they contribute to the country's international isolation.

Background

See also: Belarus–Russia relations
The disputed territories of Abkhazia and South Ossetia, between Georgia and Russia.

Belarus and Russia are two post-Soviet neighbors which are linked through a special treaty of alliance.[1] Tensions between the two began in late 2006, with rising gas prices from Russia and Belarus beginning to reconcile with the European Union.[2] Belarus joined the Eastern Partnership, an initiative for strengthening economic and political ties between the European Union and six post-Soviet states.[3] The European Union lifted its travel ban on Belarusian President Alexander Lukashenko, despite maintaining the position that the 2006 Belarusian presidential election was rigged.[3]

Following the Russo-Georgian War, the disputed regions of Abkhazia and South Ossetia became Georgian territories under Russian military occupation.[4] Belarus was pressured to recognize Abkhazia and South Ossetia as independent states.[3] At the time, only Russia and Nicaragua had extended diplomatic recognition to Abkhazia and South Ossetia.[5] Belarus didn't recognize Abkhazia or South Ossetia to avoid being internationally isolated and instead began negotiations with the United States to release political prisoners.[3] In the past, Russia has banned meat products from Poland, wine from Moldova, canned fish from Latvia and most agricultural products from Georgia when political tensions with these countries were high.[2]

Trade dispute

Putin's visit to Minsk

Chief Sanitary Inspector Gennady Onishchenko advised Russia to place the ban on Belrusian dairy product imports.

On May 29, 2009, Russian Prime Minister Vladimir Putin visited Belarus' capital Minsk and offered the final $500 million of a $2.4 billion[3] loan under the condition that the loan would be delivered in Russian rubles.[6] Lukashenko claimed that the loan was offered on the condition that Belarus would recognize Abkhazia and South Ossetia as independent.[7] Russian officials denied Lukashenko's claim.[5] Russia froze the loan,[7] with Russian politician Alexei Kudrin expressing concerns by claiming that Belarus couldn't afford to be economically independent by the year's end.[6] Frustrated by being economically dependent on Russia, Belarus refused to take the loan.[6] Following the cancellation of Russia's loan, Belarus secured a $1 billion loan from the International Monetary Fund instead.[3]

During Putin's visit to Minsk, Russia expressed interest in the privatizing some of Belarus's major milk producers. Belarus responded immediately by beginning negotiations with the European Union on certifying Belarusian milk standards according to EU regulations.[6] Russia reacted by sending health inspectors lead by Chief Sanitary Inspector Gennady Onishchenko, who was previously responsible for banning food items from other post-Soviet states.[6] Onishchenko claimed that Belarusian dairy products lacked proper certification and advised Russia to ban all related imports.[6] Russian media began broadcasting the claims that Belarusian dairy products were a health hazard.[6]

Dairy ban, CSTO boycott and negotiations

The New York Times described Russia's health concerns as "a weapon in geopolitical disputes" that Russia commonly uses in trade disputes.[8] On June 6, 2009, Russia banned around 1,200 milk and dairy products from Belarus.[5] The ban was viewed as severely damaging to the Belarusian dairy industry, of which 95 percent of its exports go to Russia.[5] Russian officials denied that the ban was political.[5] The New York Times, Politico, and The Sunday Times have referred the trade conflict as the "milk war".[5][6][9]

Lukashenko called for his advisors to draw up a list of hypothetical economic threats Russia might impose on Belarus.[1] The Belarusian Ministry of Foreign Affairs said the ban was "discriminatory trade restrictions violating international agreements".[10] The Ministry of Foreign Affairs also announced Lukashenko's intentions to boycott in the Collective Security Treaty Organisation (CSTO) summit held in Moscow.[1] Russia viewed the summit as critical to countering NATO and Western influence in post-Soviet states.[5] Lukashenko clarified that despite his boycott, Belarus would still be participating in the CSTO.[5]

Negotiations began on June 15, 2009.[6] The alleged health concerns about the dairy products were not brought up during negotiations.[6] On June 17, 2009, Russia announced that its ban of Belarusian dairy products would be lifted the next day.[8] Belarus dismantled customs posts established during the Milk War and withdrew thirty customs officers placed at the Belarus–Russia border.[11] Following the lifting of the ban, Andrew Wilson of the think-tank European Council on Foreign Relations declared Lukashenko as the winner of the Milk War, but expressed concerns about Belarus' long-term survival.[1] Vitali Silitski wrote for Politico that Russia would continue with efforts to remove Lukashenko from office.[6]

Aftermath

In July 2009, the Belarusian Ministry of Foreign Affairs issued a travel warning stating that citizens should only enter Abkhazia and South Ossetia through Georgia.[12] In September 2009, Venezuela became the third state to recognize Abkhazia and South Ossetia as independent.[13] A week later, Russia signed "multibillion dollar economic and arms trade deals" with Venezuela, described by the Jamestown Foundation as a "recognition fee".[13] During a meeting in Lithuania that same month, Lukashenko stated that Belarus should have recognized Abkhazia and South Ossetia as independent long ago to support Russia.[14] Lukashenko blamed a "witch-hunt against Belarus" over the cancelled $500 million loan and that "some in [the Russian leadership] wanted to bend us over, or did not want us to recognize these republics at all."[14]

In October 2009, Lukashenko praised Belarus' relations with Abkhazia and South Ossetia, and stated he needed to study their situation before deciding to recognize their independence.[14] Chairman of the House of Representatives Vladimir Andreichenko announced that he'd "carry out an objective assessment" on Abkhazia and South Ossetia.[14] Later in the month, Lukashenko expressed his opinion that Russia had no other choice but to recognize Abkhazia and South Ossetia independence based on "their rights to self-determination."[15] In November 2009, Belarus dispatched parliament members to Georgia, Abkhazia, and South Ossetia to carry out the study.[16] Georgia reacted by urging Belarus not to recognize the disputed regions as independent states.[16]

In December 2010, a leaked US diplomatic cable reportedly indicated that Lukashenko had complained about the EU not giving him enough credit for resisting Russian pressure to recognize Abkhazia and South Ossetia.[17] In March 2014, following the Russian annexation of Crimea from Ukraine, Lukashenko equated Belarus' stance towards recognizing Crimea's disputed status to its stance towards Abkhazia and South Ossetia.[18] Lukashenko stated, "As for the recognition and non-recognition, Crimea, just like Ossetia, Abkhazia and other regions, is not an independent state. Today Crimea is part of the Russian Federation. No matter whether you recognize it or not, the fact remains."[18] In March 2018, President of the New Economic School – Georgia Paata Sheshelidze reported that Georgia was continuously paying Belarus for its non-recognition.[19]

Later trade disputes

2013 threat and 2017 temporary ban

In 2018, Rustam Minnikhanov's concerns for dairy farmers in Tatarstan coincided with another ban on Belarusian dairy products.

In August 2013, Uralkali CEO Vladislav Baumgertner was arrested in Minsk for involvement in a criminal scheme after Belarus invited him for talks.[20] Two days later, Onishchenko again raised concerns about the quality of Belarusian dairy products.[21] This announcement was seen as retaliation for Baumgertner's arrest and sparked concerns of a second Milk War.[21] In October 2013, Russia banned dairy imports from Lithuania, with Onishchenko citing quality concerns.[22] The ban was seen as an effort to put political pressure on Lithuania for assuming the rotating Presidency of the Council of the European Union and planning to host an EU summit that would offer closer economic ties to several post-Soviet states.[22] Russia lifted the ban in December 2013 after Lithuania threatened to file a complaint to the World Trade Organization about a "milk war".[23]

In 2014, the European Union and United States imposed sanctions on Russia because of its annexation of Crimea from Ukraine.[24] Russia responded by banning the import of certain foods from Western countries.[24] Russia has accused Belarus of taking advantage of this economic situation by importing products of inferior quality, while Belarusian producers have accused Russia of deliberately placing obstacles for them.[24] In June 2017, Russia placed a ban on cheese produced by Belarusian companies Belsyr and Shchuchin Creamery's, citing fraud with labeling inconsistencies.[25] Russia lifted the ban later in the month.[25] From 2016 to 2017, exports of Belarusian dairy products to Russia decreased by 12.8%.[26]

2018–2019 dairy ban

We don’t have an embargo on Belarusian milk per se [...] I think as soon as [Belarusian] enterprises solve the problem, they will immediately have the restrictions lifted. And there will be no problem. It’s just a matter of time.

Artyom Belov, Director General of the National Dairy Producers Union[27]

On February 16, 2018, Tatarstan President Rustam Minnikhanov met with Russian Prime Minister Dmitry Medvedev and expressed his concerns that local farmers were suffering losses because dairy production had been shifted to cheaper labor for milk powder in Belarus.[28] On February 20, 2018, Medvedev made a public call for Russia to prioritize its domestic dairy industry, specifically in Tatarstan, instead of depending on other Eurasian Economic Union members.[28] Medvedev instructed Deputy Prime Minister Arkady Dvorkovich to draw up an economic proposal for the dairy industry.[28] Two days later,[28] Russia temporarily banned some Belarusian dairy products, citing health concerns.[24] Deputy of the State Duma Ayrat Khairullin raised his suspicions that dairy products were being smuggled to Kazakhstan and Kyrgyzstan, citing that more dairy products had been imported from Belarus in the past three months than what Belarus can produce in a year.[28]

On March 1, 2018, Lukashenko acknowledged the ban.[26] On April 24, 2018, Lukashenko delivered his State of the Nation Address and criticized both Western nations and Russia for contributing to Belarus' isolation.[29] In the address, Lukashenko called out "those milk, meat, and sugar wars our closest partner has launched against us in order to block our goods from entering the Russian market."[29] Prices for Russian raw milk rose during the summer of 2018.[27] The ban on some Belarusian dairy products was still in place as of May 2019.[27]

See also

References

  1. ^ a b c d "Belarus, Russia Solve Milk Row, Other Problems Loom". Radio Free Europe/Radio Liberty. June 20, 2009. Archived from the original on February 18, 2020. Retrieved February 18, 2020.
  2. ^ a b "Russia bans Belarus milk products as tensions rise". Kyiv Post. June 6, 2009. Retrieved February 18, 2020.
  3. ^ a b c d e f Marina Kamenev (June 16, 2006). "Russia-Belarus Relations Sour over Milk Ban". Time. Archived from the original on August 12, 2014. Retrieved February 19, 2020.
  4. ^ "NATO Steps Back Into the U.S.S.R." The New York Times. May 22, 2014. Archived from the original on February 27, 2020. Retrieved February 27, 2020.
  5. ^ a b c d e f g h Ellen Barry (June 14, 2009). "'Milk War' Strains Russia-Belarus Ties". The New York Times. Archived from the original on September 15, 2019. Retrieved February 18, 2020.
  6. ^ a b c d e f g h i j k Vitali Siltski (June 24, 2009). "The milk split by the milk war". Politico. Archived from the original on October 22, 2019. Retrieved February 18, 2020.
  7. ^ a b "Belarus-Russia rift widens, Minsk snubs Moscow meet". Reuters. June 14, 2009. Archived from the original on September 7, 2019. Retrieved February 18, 2020.
  8. ^ a b Clifford J. Levy (June 17, 2009). "Russia Ends Dairy Ban on Belarus". The New York Times. Archived from the original on January 16, 2018. Retrieved February 18, 2020. {{cite web}}: |archive-date= / |archive-url= timestamp mismatch; January 26, 2018 suggested (help)
  9. ^ The Sunday Times Staff (June 15, 2009). "Belarus strongman Alexander Lukashenko takes on ally Russia in 'milk war'". Ukrainian Independent Information Agency. Archived from the original on February 27, 2020. Retrieved February 27, 2020.
  10. ^ "Belarus leader may snub Moscow security meet". Reuters. June 13, 2009. Archived from the original on May 27, 2018. Retrieved February 18, 2020.
  11. ^ Sergei Grits (June 17, 2009). "Belarus removes customs posts on Russia's border". The San Diego Union-Tribune. Archived from the original on February 18, 2020. Retrieved February 18, 2020.
  12. ^ "Belarus: Only Travel via Georgia to Abkhazia and South Ossetia". Eurasianet. July 23, 2009. Retrieved February 27, 2020.
  13. ^ a b Pavel Felgenhauer (September 17, 2009). "Venezuela's Multibillion Dollar Abkhazia and South Ossetia Recognition Fee". Jamestown Foundation. Archived from the original on February 28, 2019. Retrieved February 27, 2020.
  14. ^ a b c d "Abkhazia: Lukashenko Hints on Recognition of Abkhazia, South Ossetia". Unrepresented Nations and Peoples Organization. October 6, 2009. Archived from the original on October 27, 2019. Retrieved February 27, 2020.
  15. ^ "Belarus Defends Russian Recognition of South Ossetia, Abkhazia". Voice of America. November 1, 2009. Retrieved February 27, 2020.
  16. ^ a b "Georgia Asks Belarus Not To Recognize South Ossetia, Abkhazia". Radio Free Europe/Radio Liberty. November 18, 2009. Archived from the original on February 27, 2020. Retrieved February 27, 2020.
  17. ^ Giorgi Lomsadze (December 20, 2010). "Report: Belarus' Lukashenko Wants Credit for Not Recognizing Abkhazia and South Ossetia". Eurasianet. Retrieved February 27, 2020.
  18. ^ a b "President of the Republic of Belarus Alexander Lukashenko answers questions of mass media representatives on 23 March 2014". The Official Internet Portal of the President of the Republic of Belarus. March 23, 2014. Archived from the original on February 27, 2020. Retrieved February 27, 2020.
  19. ^ "Georgia still paying Belarus for non-recognition of Abkhazia and South Ossetia". Belsat. March 3, 2018. Archived from the original on December 22, 2019. Retrieved February 27, 2020.
  20. ^ Aliaksandr Kudrytski; Yuliya Fedorinova (August 26, 2013). "Potash Dispute Escalates as Uralkali CEO Held in Belarus". Bloomberg News. Archived from the original on May 18, 2017. Retrieved February 18, 2020.
  21. ^ a b "Russia hints at 'milk war' after Belarus takes 'potash war' hostage". RT. August 28, 2013. Archived from the original on September 11, 2014. Retrieved February 18, 2020.
  22. ^ a b "Russia Suspends Dairy Imports From Lithuania". Radio Free Europe/Radio Liberty. October 7, 2013. Retrieved February 20, 2020.
  23. ^ "Russia Prepared to Cease 'Milk War' With Lithuania". The Moscow Times. December 24, 2013. Retrieved February 18, 2020.
  24. ^ a b c d "Russia Bans Dairy Imports from Belarus". Russia Business Today. February 23, 2018. Archived from the original on February 19, 2020. Retrieved February 18, 2020.
  25. ^ a b Jim Cornall (June 15, 2017). "Russia lifts ban on two Belarus cheese companies' products". The Daily Reporter. Archived from the original on February 19, 2020. Retrieved February 18, 2020.
  26. ^ a b "Shrinking economic freedom and milk war with Russia". BelarusDigest. March 6, 2018. Archived from the original on April 8, 2018. Retrieved February 20, 2020.
  27. ^ a b c Alina Gubaidullina (May 20, 2019). "Artyom Belov: "The reduction in dairy imports enabled Russian producers to develop"". Realnoe Vremya. Retrieved February 19, 2020.
  28. ^ a b c d e Daria Turtseva (February 27, 2018). "Russian boycott of Belarusian dairy: about how Tatarstan saving agriculture, and Rosselkhoznadzor — the health of Russians". Realnoe Vremya. Retrieved February 18, 2020.
  29. ^ a b "Belarusian Leader Has Harsh Words For Russia, West -- And Warning For Moscow". Radio Free Europe/Radio Liberty. April 24, 2018. Archived from the original on December 4, 2018. Retrieved February 20, 2020.
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