Business is Concerned About Interruptions in Imports to Russia via Belarus
OREANDA-NEWS. The Advisory Council on Foreign Investments (ACFI) has sent a letter to the First Deputy Prime Minister of the Russian Federation Andrei Belousov asking for help in solving the problems of road transport from Europe to Russia that arose against the background of the migration crisis on the Belarusian-Polish border, Kommersant newspaper reported on Monday, November 22, citing a copy of the letter.
The message of the Commission, which includes, among others, Danone, Mars, Metro, PepsiCo, Sanofi, Coca-Cola and Unilever, notes that about 10% of Russian imports in kind, including essential goods, pass through the Polish-Belarusian border, and more than 90% of deliveries are cars.
«Queues of trucks with a length of more than 25 km formed at the Bobrovniki checkpoint on the border with Poland, the transit time increased to 80 hours, while a day of downtime for one car costs at least €500», the letter dated November 18 states. There are also traffic jams on alternative routes through Lithuania and Latvia. In these areas, the cost per car is at least 300 euros higher.
«The continuation of the current situation may significantly affect the supply chain and the availability of goods for the population, especially given the increasing cargo turnover and increased demand for products on the eve of the New Year holidays», the ACFI warned. Business representatives asked Andrey Belousov to ensure coordination between the departments and prepare for an increase in cargo flows across the border of Russia and Latvia.
Major retailers have faced delays in import deliveries, and suppliers warn of the risks of price increases. Market participants and experts do not see an obvious logistical solution, counting on a political settlement of the issue, Kommersant notes.
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