The tariff hikes, originally planned for March 15, were delayed until July 1 following protests from importers and city officials, including Major Yury Luzhkov and St. Petersburg Mayor Anatoly Sobchak.
Alexander Shokhin, deputy prime minister in charge of the economy, has saidthe new tariffs will encourage foreign investment in the Russian economy, because it will be more profitable for foreign companies to produce in Russia. Top agriculture officials have said the new tariffs will boost domestic production.
Officials from the Foreign Trade Ministry, however, have criticized some of the higher tariffs. Spokeswoman Tatyana Aristarkhova said Foreign Trade Minister Oleg Davidov was "very disappointed" with tariff rates of 25 percent on wool and 60 percent on electronic components, since they would hurt domestic producers who rely on imports to make their products.
The 20 percent tariff on imported white sugar has led to an outcry among sugar importers and candy producers.
"New import tariffs will primarily affect the common consumer and not stimulate local sugar production," said Oxana Butnik, marketing expert for the Swiss firm Andre & Cie SA.
Butnik said the new import tariffs will nearly double the wholesale price of sugar to between 900 and 1,200 rubles (45 to 60 cents) per kilogram. Total Russian demand for sugar runs at about 5.5 million tons per year, of which local producers can manufacture 2.5 million tons, Butnik said.
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