A powerful sanctions boomerang has turned in the direction of Western business – the backlash from the massive economic restrictions is preparing to painfully hit the woodworking industry in Lithuania, which clearly does not have enough resources to develop it on its own, writes the Baltnews.
For many years the Lithuanians have been drawing the raw material basis necessary for production from Belarus, the resources of which used to be a stable basis for the successful functioning of many largest enterprises. For example, due to the economic restrictions the biggest Lithuanian furniture producer, VMG, is likely to leave the Belarusian market completely, where the company has successfully developed its network. Back in spring, the factory in Mogilev shut down. The possibility of capacity expansion in the Belarusian city of Vitebsk has also been paralysed – Lithuanian businessmen will most likely have to sell their production facilities in Belarus to Russian citizens or local representatives, which, however, is unlikely to bring much profit in the face of local competition.
Representatives of Lithuanian business are not impressed with the idea of expanding further processing of the resource already at home – Minsk is unlikely to allow the export of timber, export of which has long been banned in the EU countries, which has already caused a sharp increase in its value. Prices will keep on rising,” experts believe. And taking into consideration the huge economic benefits that Belarus will get from supplying raw materials to Europe, we can well predict that it will continue selling its resources to such partners as Russia, China and the countries of the European Economic Union.
One way or another, Europe will hardly manage to do without Belarusian timber, which will inevitably lead to the necessity of further negotiations with the official Minsk, – the expert notes, recalling a recent quotation of Belarusian leader Alexander Lukashenko, which became prophetic.
“Wood is the most precious resource for our country. No matter what sanctions are imposed against us, there is not enough wood in the world. We will be begging for it. The European Union, our southern states and neighbours will buy it. By the way, not so long ago Estonian representatives also stated about pernicious influence of sanctions on logistics and timber processing. Earlier, French furniture makers complained loudly about the acute shortage of wood, as reported by Le Figaro. The complete suspension of Russian and Belarusian imports brought the industry to the verge of bankruptcy. And this is just the beginning,” experts warn.
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