Bizmen fear losses as Russia, Ukraine war escalates

Tribune News Service

Ludhiana, February 24

The All Industries and Trade Forum has requested the Prime Minister to take care of the financial interests of industries trading with Russia and Ukraine. Due to this war exporters may face delay in payments for goods supplied or already in transit to Russia and Ukraine. Similarly, importers those have released the letter of credit may face losses due to delay in receipt of materials.

The forum has requested the government to compensate for delay of payments by allowing excess credit from banks equal to delayed payment against export to these countries.

The forum has demanded waiver of interest on loans of such exports or imports to compensate for the amount in case of any damage to goods or default in payment due to war. The forum has also demanded waiver of penalties or charges in case of delay in transit of all exports and imports due to the war situation in both countries.

Although it’s a major issue, but if total trade with Russia and Ukraine with India is taken into consideration the numbers are negligible. The total trade of India with both the countries is 55,42,930 crore. The total imports of India from these countries during April to December 2021 is worth 32,76,838 crore and total exports worth 22,66,092 crore.

“If we look at the total economy, the share of Russia and Ukraine in total India’s trade is less than two per cent. Many products from Punjab are exported. The war might have an adverse impact on the business of exporters and importers in the state,” said Badish Jindal, president, FOPSIA.

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