Russia-Ukraine Crisis Expected to Impact Local Businesses... Changwon City Strives to Minimize Damage

Changwon City Hall, Gyeongnam.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Changwon City in Gyeongnam is identifying the status of local export-import companies to prepare for the impact of Russia's invasion of Ukraine.

Russia ranks as South Korea's 10th largest trading partner, accounting for about 1.6% of exports and 2.8% of imports, while Ukraine's trade volume is approximately $900 million annually, ranking 68th.

Among Changwon's companies, export items to Russia consist of automobile parts, construction heavy equipment, and chemical machinery, making up more than 60%, which amounted to 2.88% of the city's total export value of $17,595,901,000 as of December last year.

Export items to Ukraine are mainly construction heavy equipment and automobile parts, accounting for over 80%, representing 0.13% of the city's total export value.

A city official stated that there are 12 companies related to Russia and 2 companies related to Ukraine, and although there has been no direct damage so far, damage is expected due to future international economic sanctions.

Due to the situation, energy prices such as crude oil and natural gas are rising, and instability in the supply of various raw materials is expected to cause additional damage to local companies.

Changwon City plans to continuously monitor the difficulties faced by export-import companies and closely cooperate with related organizations to minimize the impact of the situation between the two countries on companies and the local economy and to overcome the impending crisis.

Mayor Heo Seong-mu said, "I am worried that local companies might suffer damage due to the Russia-Ukraine situation," and added, "We will minimize the impact by identifying the status of related companies in the area."

This content was produced with the assistance of AI translation services.