The Foreign Investment Advisory Council (FIAC) sent a letter to the First Deputy Prime Minister of the Russian Federation Andrei Belousov with a request to help in solving the problems of road transportation from Europe to Russia, which arose against the background of the migration crisis on the Belarusian-Polish border, reported on Monday, November 22, the Kommersant newspaper “with a link to a copy of the letter.
The FIAC message, which includes Danone, Mars, Metro, PepsiCo, Sanofi, Coca-Cola and Unilever, among others, notes that about 10% of Russian imports in kind, including goods essential necessities, and more than 90% of supplies are made up of cars.
“At the Bobrovniki checkpoint on the border with Poland, queues of trucks with a length of more than 25 km have formed, the crossing time has increased to 80 hours, while a day of idle time for one car costs at least € 500,” the letter dated November 18 says. Traffic jams also appear on alternative routes through Lithuania and Latvia. In these directions, the cost per car is at least 300 euros higher.
Risks of rising prices
“The persistence of the current situation can significantly affect the supply chain and the availability of goods for the population, especially given the increasing freight turnover and increased demand for products on the eve of the New Year holidays,” the FIAC warned. Business representatives asked Andrey Belousov to ensure coordination between departments and prepare for an increase in freight traffic across the Russian-Latvian border.
The press service of the Russian government said it has not yet received letters from the FIAC. The Ministry of Transport and the Ministry of Industry and Trade of the Russian Federation declined to comment. Large retailers have faced import delays, and suppliers warn of risks of price increases. Market participants and experts do not see an obvious logistical solution, counting on a political settlement of the issue, Kommersant notes.
On the eve of the Prime Minister of Poland Mateusz Morawiecki said that against the background of the migration crisis Warsaw is considering the possibility of further tightening economic sanctions against Belarus, including the complete closure of the border, transit and trade.