Rusagro comments headline of RBC article15.03.21
Headline of RBC article «One of the leading sugar supplier in Russia announced sugar sale price growth of 78%» issued on 15 March 2021 is misleading in interpreting situation on Russian sugar market. Average sugar sale price of Rusagro in 4Q 2020 reached 39.2 RUB/kg excl. of VAT, returning to the level of 2016 (average sugar sale price of Rusagro in 2016 was 40.6 RUB/kg excl. of VAT) after a record low level of 2019 (sugar sale price of Rusagro dropped from 36.5 RUB/kg excl. of VAT in 1Q 2019 to 21.9 RUB/kg excl. of VAT in 4Q 2019). Moreover, Rusagro’s sugar sale price to retail market corresponded to the clauses of Agreement on sugar price regulation signed in December 2019, according to which sugar price was fixed at the level not exceeding 36 RUB/kg including VAT at the plant for sugar in bags. Company’s sugar sales volumes to retail were not reduced in comparison to the previous year.