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Indiaexportnews.com

EU: changes in demands, trends and relationships

  11.09.2003    

Oleg Germanovich, director, marketing department, Asstra Group Company
The forthcoming EU extension will definitely bring in changes into activities of Asstra group companies' having representations in some of the accessing countries and co-operating with other five countries.





Oleg Germanovich, director, marketing department, Asstra Group Company
The forthcoming EU extension will definitely bring in changes into activities of Asstra group companies' having representations in some of the accessing countries and co-operating with other five countries. It is already known that Poland will introduce a visa regime for the Byelorussian, Russian and Ukrainian road-hauliers, but it will not be common for the EU. The customs control will be more strict on the eastern border of Poland. Already now, a year in advance of the EU extension, customs procedures at the Polish – Byelorussian or Ukrainian – Polish borders have become more complicated. For instance, the trucks are being inspected, a number of normative documents dealing with the truck inspection at the customs, as well as at the border have been issued. Over the last years Byelorussian, Russian and Ukrainian road hauliers got used to the Baltic States visas and demands, applied to the trucks, regarding insurances, green cards and other. It is likely that Polish, Lithuanian, Latvian and Estonian road hauliers by joining the EU, will decrease their interest in Russia routes. Only those Polish companies, posessing special Ministry of Transport issued licences go to the east, although the carriers are hardly capable to deal with the problems occuring on the Polish border and in Russia with respective state bodies, concerning compulsory insurance (it costs 100 USD per three months). A tendency for the development of large-scale logistic centers and warehouses building for further goods transportation to Russia has liven up in the Baltic States. Transportation within Europe will be faster and less formal, resulting in lower rates for European operations, there will be given rise to competitiveness among the road hauliers, it will increase trucks' circulation and finally companies will be gradually integrated in the EU.

Reaching new borders

After joining the EU many European enterprises will be moved to the new countries. Due to this goods of high quality and competitiveness will be produced in Poland, Lithuania and Latvia for the EU consumption market. In Russia we can see a tendency of the development of foreign production. This is favoured by the state guarantees on laid-down capital and possibility to operate on a promising market. At the same time many of the goods manufactured in Russia are not meant for export. Russian exportbound companies have to acknowledge the giving up of this business, due to the high transportation costs. Import of industrial good in Russia makes 40% at the moment. Despite these prognoses, Russia has faced an increase both export and import. To provide for the increasing demand, AsstrA is opening new offices in Russia. A new office is started in Jekaterinburg, offering a wide range of services and coordinating its activities in a light of changing market demands. In order to supply for a competitive services AsstrA has decided to invest into the real estate market.

Influence fields of the East and the West

The EU borderline is approaching Russia and the former USSR countries. Byelorussia and Ukraine will be the EU external border, therefore these are the countries where high capacity terminals are to be built. As concerns the EU-CIS trade, the Baltic States, Russian, Byelorussian and Ukrainian companies will become more competitive than German, Polish, etc., since they are familiar with the formalities in Russia, know the market, the local mentality and the language. Germany might rise the permit quotas for the Russian and Byelorussian transport companies, in order to protect their own road hauliers. Main concern will touch upon the freight carried in the West European countries.

































































































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