Finnish-Lithuania Business Association's Newsletter, March 2022

"Terve / Labas,
February 24th in 2022 is carved in history as a very sad day for Europe. Early in the morning, Russian forces bombed several Ukrainian cities, and from there on, daily news have been about the unfortunate war and its causes, consequences and worse, victims. Huge human aid programs have begun to help Ukrainians fleeing the war from their home country to the neighbouring countries. We hope that all necessary assistance will go to Ukraine.

For once, we can see how united the European Union is and unanimously condemning the Russian invasion, and in some ways, Ukraine has become much closer to all of us than before. My apologies – during these times it is difficult for me to write anything relevant about business relations between Finland and Lithuania.

War has a major impact on the economy and business. Western companies have left Russia and trade with Russia and Belarus has been suspended. Energy markets are on the rise, and gas and oil prices are leading inflation worldwide. We immediately see rapidly rising fuel prices at the pump. Next, food prices will rise sharply, as Ukraine has been one of the most important breadbaskets worldwide and aforementioned countries have a major global synthetic fertilizer industry that is now behind the embargo. Without fertilizer, we will see less harvest on the world market and less grain in at higher market prices.

As always during the war, no one knows what tomorrow will bring us except uncertainty. Will there be peace soon? Or will the war be prolonged, which is very unfortunate for the people of Ukraine – and for the country of Ukraine, whose existence is now being tried hard? We all hope that the resilience shown by the Ukrainians so far will last and make the Russians reconsider the whole meaning of the act. Sanctions make life difficult for average Russians, but do they affect their leaders?

Countries with a border and a mixed history with Russia will be the first ones to think about security implications. It is clear that in both Finland and Lithuania, people are under pressure and taking all measures to address current challenges. Secondly, the economic implications. In this situation, it is not easy to see opportunities, only threats. It seems all power goes to following the development of the war and its impacts on people, business, and daily life. This takes a significant amount of human energy.

Some say we are now in a huge turning point in history. Big changes bring big challenges for both business and people. Those who adapt quickly and move forward can see the reward. But we know that high rewards usually involve a high-risk factor. The word disruption has been used frequently in business slang recently, referring to fast developing technologies and effects on work and doing business. The current situation is certainly disruptive, for the wrong reason. It is not easy to be optimistic. But even if all the odds in the crystal ball, SuLi will continue its good work with open eyes and ears and with all its heart – this time for Ukraine."

Risto Uusitalo
Chairman, Finland-Lithuania Business Association

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