Russia: How is the scenario for Greek exports after the imposition of sanctions

By Matina Harkoftaki

Greek export companies, which are exposed to the Russian market, are facing the first difficulties created by the imposition of European sanctions on Russia and the general climate that has developed. Although the new package of sanctions, announced by the European Union just a few days after the Russian invasion of Ukraine and which was added to the sanctions that were already in force and were imposed eight years ago, does not greatly affect existing Greek exports, however a number of problems have arisen which businesses are called upon to overcome.

“For most of the Greek products that were already exported, there is no ban on their import into the territory of Russian territory, except for the product categories, which are included in the European Union directive and each piece costs over 300 euros,” they note in Capital.gr sources with knowledge. For example, one such product category is Greek furs as the value of each fur separately exceeds the amount of 300 euros, which means that Russia is now off the export map of Greek fur companies, which will have to look for alternatives. markets.

It should be noted that in 2021 the exports of clothing and clothing accessories from fur to Russia reached a value of 14.41 million euros and a quantity of 28,147 kg, representing a percentage of 7% of total exports to this country. Another category that seems to be affected is dual-use products, which in order to be exported now require a special permit from customs after first examining the exact use of the product and verifying that it does not fall into a category that falls into the “prohibited “.

In addition, in addition to any restrictions, another factor that could act as a deterrent to Greek exports is the potentially high costs that Greek products may now incur due to the significant devaluation of the Russian currency, making them particularly expensive for average Russian consumer. For their part, Greek export companies also express their concern, due to the uncertainty that prevails in relation to whether the orders will reach the final destination safely and whether there is a possibility of smooth repayment through remittances from Russia.

In fact, recently, there have been cases where Greek banks have returned remittances from Russia which were intended for the payment of Greek companies, considering that all cash flows coming from Russia are illegal, which is by no means the case. “This is a serious issue as the specific remittances concern money which has no reason not to be collected by Greek companies”, note the same sources, saying at the same time that an effort is being made to better inform the employees in the banks in order to avoid any misunderstandings and consequently delays in their collection.