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Seafood Company Suffers as Political Tension in Ukraine Continues

Sustainability Economics Politics +4 more

UKRAINE - The current political tension in Ukraine is causing problems for on of Europe's leading crab stick and surimi producers, Viciunai Group.

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"It is very difficult for our business to hold out in Ukraine. Naturally, purchases of Viciunai products have dropped as local residents started buying canned food expecting even worse times ahead. Although, hopes are also alive that the situation will normalise sooner or later," said Visvaldas Matijosaitis, Head of Viciunai Group, speaking to ELTA news agency.

"We are aware that our losses are going to be high here but we shall continue to meet our commitments. After all there are agreements with networks – we must supply goods. When purchases fall and the exchange rate deteriorates you cannot avoid losses and start raising product prices disregarding agreements. The agreements stipulate that we have to inform traders about price increase in advance and must negotiate with them on that," he continued.

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