Russia's economic slowdown may affect meat imports
by Meat&Poultry Staff
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AMSTERDAM – Russia’s current slowdown in economic growth is most likely to deteriorate further due to newly imposed sanctions. An impact is being seen across all sectors in decreasing domestic demand, a weaker rouble exchange rate, a rise in inflation, limited access to external financing and international capital outflow, according to The Atradius Group.
As a result, businesses exporting to Russia may experience an increase in payment delays and defaults. Some sectors are expected to be more affected than others. Russia's import sanctions on food and agricultural products will hit the food sector, particularly the meat, fish and dairy subsectors, which will negatively impact the entire value chain. Sectors, such as the consumer durables and consumer electronics sectors, which are dependent on consumer demand, are also expected further slow down.
The Atradius Group provides trade credit insurance, surety and collections services worldwide.