New wave of awards

A new wave of prices from foreign markets is also expected to hit the Kosovo market, due to the launch of Ukraine's invasion by Russia, experts say on economic issues.

Russia is one of the largest energy producers in the world, and the outbreak of war in Ukraine has upset Oil markets And gas all over the globe.

The price of crude oil, Brent, on March 6th, has reached $1 118 per barrel.

The rise in the price of derivatives and energy in the world is expected to directly increase prices of other products, as in Kosovo the largest amount of goods are imported by European Union and regional states.

Prices of derivatives have already increased. In Kosovo, on March 6th, a litre of oil has been sold for 1.59 euros, meanwhile, gasoline to 1.59 euros, depending on the economic operator and location. This increase has marked the highest level in the last 20 years.

Even rising prices of basic products have been observed at stores these days. One liter of oil is sold from 1.45 to 2.09 euros, one kilogram of flour from 0.69 to 0.95 euros, and one kilogram of sugar from 0.79 euros to 0.95 euros.

Economics Professor Safet Gerjaliu tells Radio Free Europe that Kosovo cannot be immune to price hikes in European markets due to import. He says there is already high price inflation.

In January of this year, inflation reached 7.1 percent.

Kosovo citizens are facing this inflation. For example, articles that were bought for 100 euros two years ago have not been possible for 200 euros last year. Those products, which were bought at 200 euros in 2021, are currently paid 270 euros. Really, this is disturbing”, Gerjaliu says.

Product prices on EU market to reach Kosovo

Economics Professor at the University of Pristina, Berim Ramosaj, says the effects of the Russia-Ukraine war will also be noted on the price of cereals. According to him, Kosovo has negative trade balance, as more imports than exports, and the effects of the crisis, as he says, will be severe.

In addition to oil and electricity, the first effects will certainly be noted on the first subject and the cereals, respectively, because it is well known that Ukraine participates with a large quantity of cereals on the global market”, Ramosaj points out.

Ukraine is estimated to be one of the largest flour exporters in the world.

In order to protect consumers from the price movement, Safet Gerjaliu considers the Kosovo government should intervene in different forms in the private sector.

“There should be excise interventions or taxes and jointly exceed this situation, which is quite challenging not only for Kosovo, but for the whole world. I am responsible that the effects of the war between Ukraine and Russia are far greater than all the damage the COVID-19 pandemic has caused throughout the world”, he says.

So far, the Government of Kosovo has imposed trade margins only for oil derivatives, as a form to preserve access to trade disorders.

• Oilmen disagree with commercial margins

According to this decision, the highest trading margin is up to 4 percent of the sale price, while retail vendors are up to 6 percent.

Kosovo's trade exchanges with Russia, Ukraine

During 2021 alone, according to official data, over 4.6 billion euros have been the value of imported products in Kosovo, while much less, 712m euros, has been the value of exports.

Kosovo imports mainly from the European Union and the signatory countries of the Central European Free Trade Agreement (CEFTA): Albania, Northern Macedonia, Serbia, Bosnia and Herzegovina, Montenegro and Moldova.

Kosovo has no high trade exchanges with Russia and Ukraine.

According to Kosovo Customs data, last year the value of imports from Russia has been more than 50m euros, while during this year, by February 27th, Russian goods have come into value in the Kosovo market of 5.4m euros.

Alcohol, textile, oil, paper, sugar, organic chemicals, glass products are just some of the Russian products found on the Kosovo market.

The value of Kosovo products that have been spent on Russia's market last year has been over 34,000 euros, while during this year over 3,600 euros.

Only six Russian companies, or companies with citizenship owners from Russia, are registered in the Ministry of Trade and Industry. In the past five years, however, there has been no direct investment.

Meanwhile, products from Ukraine to the Kosovo market have even smaller participation.

In 2020 the value of Ukrainian goods imported to Kosovo has been around 19m euros, while last year this value has nearly doubled by over 36m euros.

Miles, coffee, tea, oil, textile, ceramics are some of the products imported from Ukraine to Kosovo last year.

The goods Kosovo exported to Ukraine in 2021 have seized over 22,000 euros, while in 2020 over 70,000 euros. / REL