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Bulgarian companies – concerned about the situation in Ukraine and the region



Bulgarian companies reported for a drop in orders and sales, late payments by Ukrainian companies, indirect losses through partners trading in Ukraine and the region. This was indicated by the survey of the BCCI on the impact of the situation in Ukraine and the region on the business of the Bulgarian companies.
 
This express poll was conducted electronically on 20-21 May 2014 among companies – members of the BCCI, and there was only one company having no business relations with Ukraine and the region.
 
Most of the respondents (almost 94%) were positive that if the uncertainty in Ukraine and the region lasts for too long, it will negatively impact on the economic recovery of our country. The situation in Ukraine has already affected the Bulgarian companies maintaining business contacts there, and according to the survey 70% of the companies stated that have suffered drops in the orders and sales, 17% reported of late payments by Ukrainian companies, 29% indicated that have suffered indirect losses through partners trading in this region.
 
When establishing contacts with companies from Crimea / Sevastopol the most common difficulties for the Bulgarian companies are related to visas and customs procedures (to 42%). Almost all of the respondents (94%) were not aware of the current conditions on the issuance of licenses, permits and other administrative procedures there. There was no such a representative of the business, participated in the survey, who knew of specific recommendations made by the Bulgarian government or any other governments within the EU on the situation there. Besides, the Bulgarian companies frequently indicated as impediments the restrictions to certain transportation routes, as well as the forced interruption of activity of their partners. 
 
When asked if they have found any solution to the problems, 80% of the respondents gave a negative answer. The rest 20% stated that they have managed to fight the impediments, and in one of the cases it was possible thanks to the support of the Bulgarian Ministry of Foreign Affairs.
 
When asked to specify what recommendations they would give to the Bulgarian authorities regarding the situation in Ukraine, most of the companies united around the need of neutral (balanced) position.
 
Participants in this survey were companies operating in the tourism sector, chemical industry and pharmacy, machine building, transport, food industry and services.
 

29.05.2014

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