site.btaBulgaria's Direct Losses from EU Sanctions against Russia Total EUR 20 Mln

Sofia, November 23 (BTA) - EU sanctions against Russia don't seem to impact Bulgarian exports, suggests an analysis of the Bulgarian Industrial Association (BIA). The share of affected goods must be insignificant from the point of view of statistics. According to the report, the effect of Russian sanctions against the EU is minimal although computable.

In record high years Bulgarian exports under embargo have totalled 11-12 million euro while in 2016 they added up to 5.2 million euro. In the time sanctions have been in place direct losses for Bulgaria would hardly exceed 20 million euro. Indirect losses are likely higher mainly due to redirection of goods from the Russian market to Bulgaria which puts pressure on Bulgarian producers on their home market.

According to the report Bulgarian suppliers don't realize their full potential on the Russian market because the conditions for access to the market and cooperation with local partners are very different  from those in the EU. Besides, successful Bulgarian companies are protecting their markets through the use of mechanisms specific for Russia not to allow new competitors. The same goes for some of the suppliers from other countries. Also, a large part of Bulgarian businessmen don't take into consideration the big changes on the market which happened in the past 10-12 years.

Another obstacle for Bulgarian suppliers is connected with the mutual recognition and compliance assessments. The report notes a need for more Bulgarian laboratories accredited to the Russian market.

The public officials in charge of various aspects of trade relations with Russia act after the fact and are unable to set forth independent positions.There are no clear commercial and economic interests and
policies to help Bulgarian exports and Bulgaria follows Russia's agenda, says the analysis. It also criticizes the operation of Bulgaria's commercial services.