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Tue, 11 Nov, 2014 12:09:29 AM
FTimes – STT Report, Nov. 11
 
File picture of Valio's logistics center in Riihimäki , which stopped production in early August this year following sanctions imposed by Russia. Photo Lehtikuva.
Compensation for dairy products following Russia counter sanctions is still on the agenda as European agricultural ministers met in Brussels.
 
Finland and Baltic countries have been hit hard by the ban and have asked the EU to prepare a compensation package for their loses.
 
Agriculture Minister Petteri Orpo in the past reassured that a compensation package in the dairy sector was on the way.
 
However, uncertainty over the compensation was raised after the EU commission diverted the agricultural funds to other purposes.
 
Orpo together with his Baltic countries' counterparts continued to lobby during the meeting.
 
Agriculture Minister Petteri Orpo. Photo Lehtikuva.
The ministers discussed the issue with Phil Hogan, the new European Commissioner for Agriculture and Rural Development.
 
The fate of the compensation package will be known on Friday when EU member states, European Parliament and the European Commission convene to discuss EU's next year budget.
 
According to Petri Sarvamaa, a Finnish Member of the European Parliament, it is still difficult to assess the possible compensation for the dairy sector, and predicts a long and tough negotiation ahead.
 
“Even before talking about the compensation figure, it has to be seen where the funding comes from,” Sarvamaa said, adding that the problem is that there is no funding available.
 
File Photo Lehtikuva.
According to the ministry of agriculture, Finnish loses in the dairy sector following the ban so far amounts to 200 million euros.
 
The losses are, however, impossible to compensate in full. According to official sources, the compensation package would largely be a symbolic gesture of support.
 
“The process is still ongoing and we have to try to find such kind of a solution whereby the funding is appropriate,” said Sarvamaa.
 
 
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