According to anonymous sources we learnt from EurActiv that the EU considers Ukraine’s confectionary industry is oversize. The industry employs over 300,000 people. But businesses there are now under threat because the EU wants to introduce a 50% tax on such products. Regarding the free-trade agreement being negotiated with the EU, the Ukrainian Foreign Minister Konstantyn Grischenko said it had given rise to "hard talk" discussions involving not only money, but also the jobs of hundreds of thousands of people. According to reports by the specialised press, sales by Ukrainain confectionery giant Roshen grew by 32% in 2010, surpassing the $1 billion threshold, while the production volume reached 410,000 tonnes in 2009. But with exports to Ukraine's largest neighbour suffering a setback over trade barriers imposed by Russia, the country instead pinned its hopes on exporting to the EU instead.

Under pressure, industry bosses have already relocated two major factories to Russia.

UkrAgroConsult