BUSINESS BELIEVES THAT A DECLINE IN THE RUBLE WILL NOT GREATLY INFLUENCE SMALL ENTERPRICES
The decline in the Ruble which started against the collapse in oil prices after the failure of negotiations on the oil output cut will have the least effect on small companies as well as those which don’t depend on the purchases of foreign equipment and raw materials. Such opinion was expressed by the representatives of business society and entrepreneurs in the survey of TASS.
exporters are to win
The decline in the Ruble exchange rate against US Dollar and Euro is likely to be positive for exporters, according to the President of All-Russian Non-Governmental Organization of Small and Medium Business “OPORA RUSSIA” Alexander Kalinin and the Co-Chairman of All Russia Public Organization “Business Russia” Anton Danilov-Danilyan.
"Those who don’t have the sources of export revenues will win. Due to the US Dollar rate the foreign currency component will bring them even more in Rubles than they have now ", considers Mr. Danilov-Danilyan.
Alexander Kalinin has similar opinion and says that in the past 12 years Russia has managed to strengthen its positions as a result of accumulated foreign exchange reserves - "the situation is supposed to stabilize within the next couple of days".
smaller business – smaller fallout
According to the Co-Chairman of All Russia Public Organization “Business Russia” Anton Danilov-Danilyan the effect of the current situation on business will be in direct proportion to its size.
"The smaller the business is the smaller the fallout it will have especially if it works with Rubles. And the larger the more considerable is the influence ", he said.
Similar opinion was expressed by Galina Volkova, the entrepreneur and CEO of the company “Orthomoda” producing orthopedic footwear. She considers that the decline of Ruble rate will have a weaker effect on small enterprises focused on the domestic market and a stronger one on medium businesses purchasing their equipment and components abroad.
Ms. Volkova also mentioned that in the recent 6-7 years the Ministry of Industry and Trade of the Russian Federation “has provided strong support for the Russian business which is now supposed to bear fruit". She expressed hope that Russian producers will be able to switch over to the current conditions and start producing goods necessary for the domestic market.
"The negative scenario is more likely for medium businesses mostly using foreign components. In the context of coronavirus the situation becomes even worth for them ", she commented for TASS.
At the time VDK company specializing in the development and manufacturing of appliances for the petrochemical and oil processing industries spoke about the enforced dependence on the European raw materials which equivalents haven’t been found yet. Sergey Shagalov, VDK Director of development pointed that with the lower exchange rates they are going to revise the on-going projects related to the modernization of the production facilities infrastructure.
"Being a producer we depend on the supplies of raw materials – polymer materials of the Swiss and Austrian production. We have only the most demanded materials at stock but they can’t cover all the existing projects. We are going to look for the alternatives", mentioned Mr. Shagalov.
Moreover some companies change their plans not so much due to the Ruble rate but because of the spread of coronavirus. There are problems with supplies from China and Taiwan according to Anton Soroko, CEO of the company “Torob.Info” focused on the trade and banking equipment as well as the software for business supplies. As for the medical technologies Alexei Liseyev, Director of development at “Medikom” LLC, involved in the medical and diagnostic technics, said they don’t expect any cancellations of the arrangements regardless of a large number of equipment purchased from Europe. However there might be some expenses and price changes in the contracts of course. But no deficit is expected.