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Can producers seek help from Government


https://www.old.ipn.md/en/can-producers-seek-help-from-government-7966_1014453.html

The Association of Can Producers of Moldova “Speranta-Con” calls on the Government to take measures to prevent the bankruptcy of the processing industry. Representatives of can producers told a news conference that following the ban imposed by Russia on the import of cans from Moldova, the national canneries sustained losses of over 200 million lei, IPN reports.

The head of “Speranta-Con” Ivan Sandic said that the Moldovan canneries by August 1 produced cans to the value of 287 million lei, which is about 28,000 tonnes of cans. Most of the finished products were to be exported to Russia and were now stored. Owing to the ban imposed by Russia, the companies will be unable to sell them over the next 6-9 months.

Ivan Sandic noted that in such a situation, the canneries cannot purchase all the fruit and vegetables. Moreover, the farmers need substantial financing from the state to pay for the agricultural products as the loans they must repay will cause the whole processing industry to go bankrupt. More than 4,000 employees of the processing industry will lose their jobs.

The can producers ask the Government to use all the available instruments to strengthen the commercial relations with Belarus and Kazakhstan so as to be able to export Moldovan cans to these countries The companies also need guarantees to transit goods to the markets in Central Asia trough Russia and ask for loans from the central bank, repayable in five years at a preferential interest rate.

The can producers also demand classing the ban imposed by Russia on the import of Moldovan fruit and vegetables as a force majeure situation and exempting them from paying taxes into the state budget. They said the Government hasn’t yet allocated the promised 20 million lei for purchasing fruit and vegetables for schools, kindergartens and the army.