Europe abandoned the Crimean

The ban on the European Union for the import of goods from Crimea is rather a political gesture than an economic sanction

Since June 25, the European Union introduced a ban on the import of goods from Crimea and Sevastopol without Ukrainian certification. In addition, European countries refused the insurance of Crimean carriers and the provision of financial services to them. However, according to experts, the EU decision is largely political in nature and is practically not able to harm the economy of the peninsula annexed by Russia.

According to the Main Directorate of Statistics of the Republic of Crimea, in recent years, the share of export of goods from the territory of the peninsula to the European Union countries ranged from 23 to 25 percent, in 2013 the volume of such supplies exceeded $ 200 million. Moreover, as notes the member of the Expert Council of the State Duma Committee on Economic Policy, the partner of Taxovik Roman Terekhin, only Germany and Italy were the main partners of the Crimea in the EU states, exports to other European countries were minimal. Basically, the products of the chemical industry, mineral products, mechanical and electric machines, as well as alcoholic drinks were exported from the peninsula.

The world community never recognizes the illegal annexation of the Peninsula of Russia

Those who have made the decision to introduce the ban on the head of the foreign policy departments of the European Union are sure that it demonstrates their clear position: the world community never recognizes the illegal annexation of the Peninsula of Russia. But, despite such, seemingly tough measures, the region’s economy will not suffer much. At least in this they hastened to assure the inhabitants of Crimea and Sevastopol their new leaders. This is also confirmed by local entrepreneurs.

Many foreign economic relations were violated immediately after the so -called March referendum on state independence of Crimea. For example, the work of Tavrida-Electric, known in Sevastopol, which manufactures vacuum switching equipment, was complicated due to the pro-Russian activity of its owner Alexei Chally . However, other Sevastopol enterprises, whose leaders were not involved in the events of three months ago, continue to cooperate with foreign colleagues. Valery Sklyarov, acting head of the state enterprise Sevastopol Sea Fish Port, admits that such sanctions from the European Union may affect the work of his company, but does not believe that this will not become a serious blow to their business.

The ban on our enterprise should affect, but there are a lot of ways to get around it

- The ban on our enterprise should affect, but there are a lot of ways to get around it. These decisions are unprotected, ill -conceived and do not correspond to many international conventions. The European Union itself is absolutely not interested in these completely far -fetched sanctions. The business will win, the economy will win, ”Sklyarov hopes.

Crimea wine companies also exported their goods to European countries, but the percentage of exports from total sales was small. For example, the Massandra plant known on the peninsula sent its products mainly to the markets of Russia, the Far East and Asia. Sevastopol winemakers also could not boast of large sales of local wines in the European market. According to Inkerman International Group of Companies, Svetlana Lyubchenko , their company only planned to cooperate with European countries:

We had plans to enter the European market, these plans at this stage remain

- The European market for Inkerman International is the market that we have just started to develop. We had the first contacts, but sales were a literally meager share in our total sales. Therefore, this decision will not have any financial effect on the company. We had plans to enter the European market, these plans remain at this stage. And as it will be next, we will watch, ”says Svetlana Lyubchenko.

As for the chemical industry of Crimea, the largest exporter in this industry remains the Crimean Titan enterprise, a manufacturer of Titan's dioxide leading in Eastern Europe. It is used in the production of plastics, in the paintwork and rubber industry. On the official website of the plant, you can find information about numerous European distributors in countries such as Hungary, Spain, Austria, Germany, Italy, Serbia and France. An attempt to get an official comment from the management of the enterprise did not bring success. In the Kiev office of the company, an interlocutor who did not want to name his name answered briefly: "While we are working. I can’t tell anything else." In the meantime, it can be assumed that the Crimean Titan will be able to continue to trade with European countries using its Ukrainian distribution office.

In other words, while the ban on the supply of goods from Crimea to the European Union countries does not portend an economic disaster for the peninsula. The reason for this, says Roman Terekhin , a partner of Takvik, in the features of the business of most Crimean companies:

- Few of them worked directly with Europe. As a rule, these were some stages of technological processes in interaction with other Ukrainian companies. And, by the way, this is also now for them-to rebuild the interaction in such a way as to fit into other, maybe some Russian production chains. Because interaction with Ukraine has decreased for a long time.

- In the decision of the European Union it is stipulated that only those goods that have not passed Ukrainian certification will be prohibited. Is there such an option that Crimean goods will go to the EU through Kyiv? Or is there still a political decision and all of them will unfold towards Russia?

Such economic sitting on two chairs is a very complex process from a legal point of view

- Since in Crimea, not all companies favorably perceived the transition to Russia, some of them can try to get Ukrainian certification and, using this, enter the European market. But it must be understood that such an economic sitting on two chairs is a very complex process from a legal point of view. The company that is registered in Russia will be difficult to pretend that it is Ukrainian. Obviously, when the EU speaks of a certain Ukrainian certification, it means that, that is, this measure can be considered prohibitive.

- Are deliveries through the territory of Russia impossible?

The path of preserving the EU market until the European Union itself has no desire to open it, almost dead end

- Re -export through the territory of Russia is possible, and, probably, they will also try to use it. But again, the problem is that the cause of sanctions is a policy. And when we are talking about politics, it is obvious that the goal is to complicate the life of the Crimean business. And this means that sanctions can be introduced not only directly against Crimean companies, but also in relation to re -export, and moreover, even in relation to those companies that interact with Crimean companies. That is, the methods of pressure can be different, and, unfortunately, if Crimea tries to somehow get out and cling to interaction with the European market, then probably European countries will also try to block the channels. Therefore, the path of preserving the EU market until the European Union itself has no desire to open it, almost dead end.

- Now they write a lot about the fact that against the backdrop of the import of importing Crimean goods to Europe and the destruction of ties with Ukraine, the peninsula has not yet legally established connections with Russia, there are no same contracts and cooperation agreements. In your opinion, how long is this problem?

- In general, building relationships with a new country for large business is a task of more than one day or even one month. And here it will be very important how actively the administrative resource will be involved, how much the federal center will help the construction of this interaction. Already now we see that many companies with state participation are sending their employees to the Crimea on vacation. But obvious, but the problem is not that

Building relationships with a new country for large business is a task of more than one day or even one month

Previously, this was impossible, but it is obvious that this is a kind of psychological support, including. We see how much funds are invested in the transport development of Crimea. If this will happen, if an infrastructure is built, which is now poorly developed (after all, Crimea with Russia does not even have a normal transport message), then as this will be intensified with the connection with the Crimea. In addition, we also heard that the authorities asked Russian companies to build interaction with the Crimean contractors, that is, place orders from them. And companies with state participation will probably do something there, perhaps, including the Ministry of Defense will place its orders at Crimean enterprises. This will be a good incentive for a large Crimean business to be loaded with orders. And when a large business develops, a small business network is developing around it, which is engaged in ensuring its activities. This, accordingly, becomes an engine for development and small businesses also.