How do Croatian and Russian companies cooperate under sanctions

Croatia must survive mutual sanctions of the EU and Russia which will last will at best take the whole 2015, and at worst can last for several years.

Most importantly, we need to remember is that Russia and Europe must go back to the mutually beneficial cooperation. The main problem of Croatian companies in order to enter the Russian market are lack of initiative courage, inability or unwillingness of business planning at least a year in advance. Lack of initiative means lack of desire for the organization of the Agents scheme which is the main factor that does not allow the Croatian SMEs for Russian market penetration.

Another problem is the lack of long-term planning, and it is necessary to have a long-time budget to become a participant of the great Russian market, and this can not be achieved with investments of 200-300 euros a month.

One of the main problems of Russian companies in Croatia are the bureaucracy, the intricacy of the legal framework and low entrepreneurial activity. Another problem is their inability to integrate the Croatian social and cultural environment that is needed to successfully start a business in Croatia, they need to find a common language with local entrepreneurs.

 The most successful Croatian company that has developed its business in Russia is Podravka. Interesting fact is that term “Podravka Vegeta“ is known to every Russian. However, if you ask them which country produces Vegeta majority will not be able to respond. Somewhere in Eastern Europe“, will respond average Russian. This once again shows how little is made by Croatia to promote their country as a brand. Branding Croatian food industry and the field of health and medical tourism would bring us a tremendous economic benefit for decades in advance and it is a problem that should be dealt with at the national level. None of Croatian companies can not and must not itself carry out this ambitious task.

Due to the large and rapid drop of the Russian ruble together with a drop of oil prices, many jobs were canceled or postponed indefinitely or until stabilization of the ruble, which is not expected until the beginning of 2015.

However, there is no doubt that the situation will normalize.


Source: Russia Beyond The Headlines

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