Falling Rouble to Have Negative Consequences on Bulgarian Business - BICA

A woman walks in front of electronic information panels displaying currency exchange rates in Moscow. Photo: EPA

At the request of Novinite, the Bulgarian Industrial Capital Association (BICA) has explained the negative consequences on Bulgarian business arising from the devaluation of the rouble.

The anticipated disturbances are largely due to the fact that Russia has been Bulgaria's biggest trading partner for the past three full years - 2011, 2012 and 2013.

Bulgaria's commercial exchange with Russia for the past three years amounts to BGN 31 B, followed by Germany and Italy, with respectively BGN 30 B and BGN 21 B.

According to BICA, Bulgarian exports to Russia in the sectors of machine-construction, pharmacy, electrical technologies and transport are to be affected the most from the devaluation of the rouble.

Other sectors that are to suffer include the Bulgarian markets of real property, construction and tourism.

There are difficulties with the redirection of Bulgarian production, which has been destinied to Russia, to other markets.

These stem from the exchanged sanctions between the European Union and Russia, which have led to the slowdown of the European economy.

European industry recorded a contraction in the month of November, making it difficult to incorporate additional Bulgarian exports.

Markets in third countries are even harder to reach, BICA claims.

It is crucial that the interest of Bulgarian business is championed, when seeking solutions to the problem with Russia at the common European level.

Improvement of the business climate domestically is another prerequisite for the recovery of Bulgarian business.

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