site.btaPM Borissov: Sanctions Are an Extreme Measure Causing Losses to Bulgaria, Russia, Europe

PM Borissov: Sanctions Are an Extreme Measure Causing Losses to Bulgaria, Russia, Europe


Sofia, May 15 (BTA) - Answering a question from Ataka leader
Volen Siderov at Parliament's Question Time on Friday, Prime
Minister Boyko Borissov said sanctions are an extreme measure
which inflicts losses on Bulgaria, Russia and Europe.

Borissov said: "We have backed the sanctions as a loyal member
of the Euro-Atlantic community, and at the same time we said
very clearly that the counter-sanctions that Russia imposed on
the EU are inflicting losses on Bulgarian tourism, light
industry and especially agriculture." The Prime Minister
expressed a hope that relations would return to normal once the
Ukrainian crisis was settled. Hopefully, this will happen in
2015 so the sanctions and counter-sanctions can be lifted. "We
disagree with the policy towards Ukraine but at the same time we
do not want to break our relations with a fraternal nation and
lose economic ground there," said Borissov.

He said several ministers would make visits to Moscow for
economic, energy and agriculture forums. A visit by the Finance
Minister is also forthcoming.

Answering a question, Economy Minister Bozhidar Loukarski said
that since Russia imposed import restrictions, between August
and December 2014 Bulgaria's export of agricultural goods and
foods, which are mostly on the banned list, dropped by 2.6
billion dollars from a year earlier. He recalled that Bulgaria's
trade with Russia was strongly and directly impacted by
Moscow's ban on the import of certain foods from the EU in
reaction to the EU sanctions: fresh fruits and vegetables, meat
and milk products.

Export of agricultural products decreased 4.4 per cent in 2014
to 67.8 million dollars and accounted for 9.6 per cent of
exports to Russia. In 2013 exports to Russia which are now on
the banned list totalled 13.4 million dollars. They were about
9.8 million dollars in 2014, down by 4.6 million dollars from a
year earlier.

In 2014, in the conditions of sanctions export to Russia
decreased by 8.8 per cent to 707.6 million dollars, the Minister
said. Russian import to Bulgaria contracted by 16.1 per cent to
5.3 billion dollars adding up to a decrease in commecial
exchange of 15.3 per cent. At the same time, however, the
Bulgarian deficit in two-way trade went down by 17.1 per cent to
4.6 billion dollars.

The export of two groups of commodities to Russia, medicines and
automotive parts, which make up some 39 per cent of the total
export, grew by 6.6 per cent and 1.3 per cent, respectively.

Due to the introduction by the EU of authorization requirements
for commodities that can be used for oil prospecting, export in
August - December 2014 totalled 275,000 dollars which was
606,000 dollars less than this time in 2013.

Central bank statistics shows that in 2014 foreign direct
investmnet from Russia totalled 107,6 million euro or 164.5 per
cent more than in 2013.

The 15th meeting of the Bulgarian-Russian intergovernmental
commission for economic cooperation is due in October 2015.

Loukarski said that he is going on a working visit to Moscow in
late May with a delegation of 30 business representatives. There
he will be meeting Deputy Economy Minister Alexey Likhachev to
discuss the upcoming meeting of the mixed commission and the
opportunities for future economic cooperation, including in the
conditions of sanctions.

A Bulgarian-Russian business forum is expected to be held on the
sidelines of the visit.