The Socio-economic Situation of Finnish Product Companies in Russia in the Context of the Embargo and the COVID-19 Pandemic
( Pp. 95-101)
More about authors
Lagoyko Anastasia G.
senior lecture at the Higher School of International Relations
Higher School of International Relations of the Peter the Great Saint Petersburg Polytechnic University
Saint Petersburg, Russian Federation Egorova Aleksandra I.
Higher School of International Relations of the Peter the Great Saint Petersburg Polytechnic University
Saint Petersburg, Russian Federation
Higher School of International Relations of the Peter the Great Saint Petersburg Polytechnic University
Saint Petersburg, Russian Federation Egorova Aleksandra I.
Higher School of International Relations of the Peter the Great Saint Petersburg Polytechnic University
Saint Petersburg, Russian Federation
Abstract:
The article covers the period from 2014 to 2021, complicated by the difficult geopolitical situation against the backdrop of the Ukrainian crisis in 2014 and the subsequent pandemic of a new coronavirus infection. Finnish food companies had to adjust to Russian counterclaims and the food embargo in 2014. In addition, their work has also been affected by the COVID-19 pandemic. In addition to the basic need to consider the preferences of the Russian consumer, it was necessary to consider the numerous changes that have occurred in recent years, to which companies have had to adapt. To do this, it was important to understand how companies have maintained their positions in the market. The purpose of the research is to examine the peculiarities of the position of Finnish food companies in the Russian market in the context of the food embargo and the coronavirus pandemic. Particular attention is paid to the real cases of the largest Finnish food companies such as Valio, Fazer, Atria. Conclusions. The Russian counterclaims turned out to be unexpected for Finland. In addition to financial losses caused by the crisis for producers, the food embargo also had an indirect effect, which led to disruption of the domestic market and lower producer prices. The unstable situation in the Russian market has significantly complicated the position of Finnish food companies in the market. As a result, companies suffered millions in losses. The COVID-19 pandemic, in turn, despite the need to adapt to new conditions, caused less damage to Finnish food companies in the Russian market than the counterclaims of 2014. Companies have invested in the development of existing products, as well as in the expansion of the range, the most consistent with the new market realities.
How to Cite:
Lagoyko A.G., Egorova A.I., (2022), THE SOCIO-ECONOMIC SITUATION OF FINNISH PRODUCT COMPANIES IN RUSSIA IN THE CONTEXT OF THE EMBARGO AND THE COVID-19 PANDEMIC. Sociopolitical Sciences, 6 => 95-101.
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Kukkonen L. Ven j -pakotteet l iv t Suomen ruoka-viennin polvilleen, nyt Kiinasta on tulossa vauhdilla uusi Ven j // Helsingin sanomat. 14.7.2021. URL: https://www.hs.fi/talous/art-2000008113659.html (data of accesses: 21.11.2022).
Helwig N., Jokela Ju., Portela C. Sharpening EU sanctions policy for a geopolitical era // Publications of the Government s analysis, assessment and research activities. 2020. No. 31. 206 p.
Finnish dairy company Valio to close plant due to Russian food embargo // The Moscow Times. 01.06.2016. URL: https://www.themoscowtimes.com/2016/06/01/finnish-dairy-company-valio-to-close-plant-due-to-russian-food-embargo-a53120 (data of accesses: 19.11.2022).
Valio pakotteista: Menetyksi tulee, mutta kaikki maito pystyt n ostamaan tuottajilta // Yle. 07.08.2014. URL: https://yle.fi/uutiset/3-7398595 (data of accesses: 29.11.2022).
Russian trade policy: Achievements, challenges and prospects. S.F. Sutyrin, O.Y. Trofimenko, A.G. Koval (eds.). London: Routledge, 2019. 332 p.
Vuosikertomus 2014. Atria. 117 p. URL: https://www.atria.fi/contentassets/5161fd982040413795c39b1c838232e0/2014-vuosikertomus.pdf (data of accesses: 30.11.2022).
Vuosikertomus 2015. Atria. 121 p. URL: https://www.atria.fi/contentassets/8b30520e97c14421a2396e117ad678f1/vuosikertomus-2015/atria-oyj-vuosikertomus-ja-tilinpaatos-2015.pdf (data of accesses: 30.11.2022).
Vuosikertomus 2016. Atria. 124 p. URL: https://www.atria.fi/globalassets/atriagroup/taloustieto/atria vuosikertomus-2016 final.pdf (data of accesses: 30.11.2022).
Vuosikertomus 2017. Atria. 67 p. URL: https://www.atria.fi/globalassets/atriagroup/yritys/vuosikertomus-2017/atrian-vuosikertomus tilinpaatos-2017.pdf (data of accesses: 30.11.2022).
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Vuosikertomus 2013. Atria. 123 p. URL: https://www.atria.fi/contentassets/faea3d4496cc4dd49f05fbf5ade2a513/wkr0006.pdf (data of accesses: 30.11.2022).
Vuosikertomus 2012. Atria. 139 p. URL: https://www.atria.fi/contentassets/188eaa3c76454695a9a3f782fa474810/atria vuosikertomus12 fi.pdf (data of accesses: 30.11.2022).
Vuosikertomus 2020. Atria. 140 p. URL: https://www.atria.fi/globalassets/atriagroup/yritys/vuosiraportointi-2020/atria vuosikertomus 2020 final .pdf (data of accesses: 30.11.2022).
Voittoa Ven j lt - Atrian yhteenlasketut tappiot it naapurissa 50 miljoonaa euroa // Maaseudun Tulevaisuus. 13.02.2019. URL: https://www.maaseuduntulevaisuus.fi/uutiset/3b9c5d12-0f38-58a7-89db-e4e4dc294f61 (data of accesses: 03.12.2022).
Fazer-konsernin vuosikatsaus 2014. Fazer. 49 p. URL: https://www.fazergroup.com/globalassets/global/fazergroup/reports--governance/reports--presentations/fi/fazer vsk14 fi final.pdf (data of accesses: 05.12.2022).
Fazer-konsernin vuosikatsaus 2019. Fazer. 69 p. URL: https://www.fazergroup.com/globalassets/global/fazergroup/reports--governance/reports--presentations/fi/fazer group annual-review 2019 fi links.pdf (data of accesses: 20.11.2022).
Atrian liikevaihto ja tulos kasvoivat Ven j ll kolmannella nelj nneksell // Suomalais-Ven l inen kauppakamari. 22.10.2020. URL: https://www.svkk.fi/uutishuone/atrian-liikevaihto-ja-tulos-kasvoivat-venajalla-kolmannella-neljanneksella/ (data of accesses: 11.11.2022).
Atria refocuses on growing fast food market in Russia. Finnish-Russian Chamber of Commerce. 16.02.2021. (In Rus.) URL: https://www.svkk.ru/novosti/atria-prodaet-dochernjuju-kompaniju-v-rossii-i-pereorientiruetsja-na-rastushhij-rynok-bystrogo-pitanija (data of accesses: 15.11.2022).
The first wave has been a good crash test. Kommersant. 30.10.2020. (In Rus.) URL: https://www.kommersant.ru/amp/4548691 (data of accesses 15.11.2022).
During the pandemic, Fazer launched a new product category on the Russian market. Finnish-Russian Chamber of Commerce. 02.12.2020. (In Rus.) URL: https://www.svkk.ru/novosti/v-uslovijah-pandemii-fazer-zapustil-na-rossijskom-rynke-novuju-kategoriju-zamorozhennoj-produkcii/ (data of accesses: 15.11.2022).
Hallituksen toimintakertomus 2021 // Fazer. URL: https://www.fazergroup.com/fi/tietoa-fazerista/hallinto-ja-johtaminen/hallituksen-toimintakertomus-2021/ (data of accesses: 18.11.2022).
Kipeneva E. Valio. In the future, those companies that offer innovative health products will win. Milknews. Dairy market news and analytics. 31.03.2021. (In Rus.) URL: https://milknews.ru/interviu-i-blogi/elena-kipeneva-valio.html (data of accesses: 18.11.2022).
Keywords:
Russia, Finland, food embargo, pandemic, coronavirus, food companies.
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