THE SOCIO-ECONOMIC SITUATION OF FINNISH PRODUCT COMPANIES IN RUSSIA IN THE CONTEXT OF THE EMBARGO AND THE COVID-19 PANDEMIC

Abstract

The article covers the period from 2014 to 2021, complicated by the difficult geopolitical situation against the backdrop of the Ukrainian crisis in 2014 and the subsequent pandemic of a new coronavirus infection. Finnish food companies had to adjust to Russian counterclaims and the food embargo in 2014. In addition, their work has also been affected by the COVID-19 pandemic. In addition to the basic need to consider the preferences of the Russian consumer, it was necessary to consider the numerous changes that have occurred in recent years, to which companies have had to adapt. To do this, it was important to understand how companies have maintained their positions in the market. The purpose of the research is to examine the peculiarities of the position of Finnish food companies in the Russian market in the context of the food embargo and the coronavirus pandemic. Particular attention is paid to the real cases of the largest Finnish food companies such as Valio, Fazer, Atria. Conclusions. The Russian counterclaims turned out to be unexpected for Finland. In addition to financial losses caused by the crisis for producers, the food embargo also had an indirect effect, which led to disruption of the domestic market and lower producer prices. The unstable situation in the Russian market has significantly complicated the position of Finnish food companies in the market. As a result, companies suffered millions in losses. The COVID-19 pandemic, in turn, despite the need to adapt to new conditions, caused less damage to Finnish food companies in the Russian market than the counterclaims of 2014. Companies have invested in the development of existing products, as well as in the expansion of the range, the most consistent with the new market realities.