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Dairy Wars Spreading

KIEV — Ukraine on Thursday barred imports of Belarussian milk and milk products.

"Excessive amounts of veterinary drugs were found in milk products from Belarus," Ukraine's state veterinarian service said in a statement.

Russia last month barred imports of cheese produced by three Ukrainian companies and expanded the blacklist to seven firms this week, accusing them of using excessive quantities of palm oil, a cheap substitute for milk. Thursday's move could ease pressure on Ukrainian milk producers by eliminating competition from Belarus, which devalued its ruble by 65 percent last year, drastically cutting production costs compared to foreign rivals.

(Reuters)

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