The Russia-Ukraine conflict hits Polish entrepreneurs

The expected Russian invasion of Ukraine, combined with sanctions that threaten Western countries in retaliation, may also have a painful impact on Polish business. Ebury's analysts note that the freezing of payments, the inability to exchange the ruble for hard currencies such as the dollar or the euro, the insolvency of contractors, and, finally, Russia's cut off from the international SWIFT settlement system – all these hypothetical risks may take real shape very soon.

"The USD / RUB exchange rate has already reached the level of 78-79 – the lowest in over a year. The Ukrainian hryvnia is also going through a serious crisis and has already lost more than 6 percent to the dollar since the beginning of the year. Such a significant weakening of these currencies is unfavorable for Polish exporters," Ebury experts noted.

In their opinion, Polish exporters and importers should thoroughly verify contractors and collect all documents proving the purposefulness of the transactions carried out.

"These are, for example, invoices and bills of lading confirming the exchange of goods in the scope consistent with the conducted activity (entry in the PKD). If a transaction raises suspicions of a financial institution, it is obliged to verify it and, if necessary, even suspend the transfer," they added.

You should also consider receivables insurance, incl. from political risk and possibly consider hedging the exchange rate.

(WBJ)