President of the Chamber of Foreign Trade of Bosnia and Herzegovina (BiH), Ahmet Egrlic Explain that the economy of BiH will directly feel the effects of the conflict between Russia and Ukraine because foreign trade with these countries could be reducedand indirectly through energy imports.
”With regard to direct damage, if there are more serious sanctions and the isolation of Russia from European Union (EU)countries and the interruption of payment operations, we can expect to lose a market of more than 100 million Boom, ” Egrlivsindicated for agency Fena.
”In the structure of exports, most are pharmaceutical products, worth about 81 million KM, which he added will affect the pharmaceutical industry. mostmonitoring of our fruit and vegetable exports to Russia.
This is less than one percent of our total exports, and as far as Ukraine is concerned the exports are significantly lower, only 9.6 million KM and this is negligible in total foreign trade. Pharmaceutical products are also the most exported to Ukraine, and we mainly import assortments of wood (plywood), whish we use as raw materials” Noted Egrlivs.
He stress that the indirect damage could be significantly higher due to the import of energy products into BiH, mainly mineral fuels and gas from Russia.
”We currently have no alternative. This can affect our economy and affect general price growth. The general demand will be reflected in Bosnia and Herzegovina because, as can be seen on the London Stock Exchange, oil has reached record prices, the The highest since 2014. The fact is that energy some products significantly affect the final price of all products and if this price growth continues, we will have an increase in the price of almost all goods” Egrliit says.
”As to how the Russian-Ukrainian crisis affects Bosnia and Herzegovina’s main foreign trading partners, such as some EU members, Egrlic noted he personally feared a complete disruption of supply chains and higher prices in general.
The BiH processing industry will continue to work for our customers as it has been up to now, but input parameters and raw materials are likely to become more expensive and there will be a struggle to increase and balance final prices. There may be problems, but it is difficult to Craft to predictionsand it all depends on how long the Russian-Ukrainian crisis lastsyou,” Egrlic added.
”If all this is completed quickly, according to him, we can expect a stabilization of supply and a stabilization of prices. However, if the crisis keep on going and if the demand for various goods increases, it will cause the prices to rise, and then this is still difficult to predict all.
After the pandemic, it is a kind of message about the importance of having reserves of raw materials capable of responding adequately to this and other crises.” Egrlivs concluded.