Filenews 25 February 2022 - by TheanoThiopoulou
Cypriot importers and exporters are waiting for the expected new price rise due to the war.
The shocks that the Cypriot economy and especially the import and export companies trading with Russia and Ukraine may experience are being crystallized by the business world, following the developments very concerned. The content of the new sanctions against Russia by the Western allies will largely determine the next day as well.
However, it will all depend on what exactly the sanctions will be after yesterday's invasion, which persons and which businesses will be affected in Cyprus or in relation to Cyprus.
Already, the first problems in trade began to appear in the ports of Odessa and Mariupol and essentially the blockades or the obligatory changes of itineraries are expected to determine to a large extent the course of the freight markets. This means a rise in prices or a delay in receiving or exporting products. The Black Sea could become inaccessible for commercial purposes and for shipping, either in full or in part, with the result that trade is carried out with obstacles, which also implies a sharp increase in prices.
The Russian-Ukrainian crisis is expected to inevitably affect sectors of economic activity in Cyprus as well, observes the business world and perhaps a prolonged escalation will have side effects on the supply chain, perhaps even on the adequacy of some products.
According to the data gathered by "F" from the Statistical Service, the biggest burden of exports to both countries lies with medicines and imports, cereals from Ukraine and mineral oils from Russia.
Stop waiting from OEB and CCCI
For the moment there is no serious depiction of problems in the business world, Michalis Antoniou, general manager of OEB, told "F" yesterday. We must evaluate noted the content of the sanctions and the Russian response with the countermeasures it will take.
CCCI Secretary General Michalis Tsiakkis told "F" that we are currently restrained, until we see how long the Russian-Ukrainian crisis will last and how much the price of oil will be affected. We do business, he noted, more with the two countries in the field of services, tourism and then with trade. We shouldn't panic, he concluded.
Take it with both countries
Ukraine
Imports of products from Ukraine in the period January - November 2021 amounted to €19,972,804 and exports to €9,899,691. The largest category of imports from Ukraine is cereals, with a value of €6,840,549. The second major import category, worth €4,000,559 in the eleven months of 2021, was animal or vegetable fats, prepared with edible fats. The third category of imports from Ukraine, worth €1,544,569, are alcoholic beverages and vinegar.
Regarding the exports of Cyprus to Ukraine, the first category in value is medicines and wider pharmaceuticals, with the value of the transactions being €7,723,285. The second major category of exports to Ukraine is edible preparations, with their value in the eleven months of 2021 amounting to €171,281. Next comes the category of animal feed with €112,311 and tobacco products with €90,940.
Russia
Trade with Russia shows that the value of imports in the eleven months of 2021 was €80,121,408 and exports €60,663,259, but there are special reasons that increase the amount of exports. The largest import category, with a value of €10,294,175, is fossil fuels, mineral oils and their distillate products, followed by imports of cereals worth €9,454,051 and animal feed, with a value of €6,025,608. Imports of wood, wood and charcoal items are €3,436,859, iron and steel €2,778,377, paper and pulp €1,018,010. The import value of works of art, collectibles and antiques is another large category, with a value of €802,066.
Most exports to Russia are in the pharmaceutical category, with the value amounting to €6,300,353 in the eleven months of 2021, electrical machinery and equipment, sound reproducing mechanisms and their accessories, with the value being €529,613. Clothing exports are in the order of €202,380.
