At the same time, overdue debt amounts to around 43 billion roubles, or €440 million. This represents 4.5 per cent of total liabilities, notes BCS-Express. The largest debtors are companies from Kazakhstan – 401.3 billion roubles (€4.10 billion), Belarus – 327.3 billion (€3.34 billion) and Uzbekistan – 81.7 billion (€835 million).
Market participants cite complications in settlement procedures as one of the reasons for the rise in debt. Following the tightening of US sanctions, banks in CIS countries have stepped up their checks, said Alexei Begaev, founder of the ‘Insek’ group of companies and a member of the General Council of ‘Business Russia’. According to him, due to the increase in the number of payment routes, transactions may take longer, and goods may remain unpaid for several months.
Another factor is competition between Russian suppliers and companies from China and Turkey. As Oleg Abelev, head of the analytical department at the investment firm ‘Ricom-Trust’, noted, in order to retain customers, Russian businesses are having to agree to longer payment deferrals. In his view, the rise in debt also highlights the importance of the CIS market for Russian companies: the loss of even a single customer in the region could prove critical.
Currency factors also influence the scale of the increase, but they do not account for the entire rise. The strengthening of the rouble masks the underlying trend: in currency terms, debt has risen by approximately 50 per cent over the year. Therefore, the record increase cannot be explained solely by exchange rate revaluation.
High interest rates and changes to the tax regime in Russia are placing an additional burden on Russian businesses. Exporters are having to assess their counterparties’ solvency more carefully and set limits on payment deferrals.
The challenge for Russian businesses is no longer merely to maintain export volumes, but also to create payment and financing conditions under which cooperation with clients from CIS countries remains economically viable.
At the same time, this interdependence works both ways. The debt owed by Russian companies to businesses in CIS countries has also risen – by around a quarter over the past year. However, the total amount remains significantly lower: approximately 506 billion roubles, or €5.17 billion.
Thus, the total liabilities of CIS companies to Russian businesses are almost double the amount of the reciprocal debt. Against the backdrop of growing trade links with the region, Russian exporters face the dual challenge of retaining customers whilst minimising the risks associated with payment delays.
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