The Covid pandemic has affected Croatian-Russian economic relations, with trade dropping 21% in the first seven months of the year, and the focus should be on turning the trend around, the Croatian Chamber of Commerce (HGK) said on Thursday in a press release on a Russian-Croatian banking forum.

In the first seven months of 2020, trade between the two countries totalled US$ 228 million, down 21% on the year. We must focus on turning the trend around and work together on returning to the volume of trade which used to exceed $2 billion, the online forum was told.

Banks must play a key role in that, said Josip Zaher, the HGK vice president for commerce and financial institutions.

Croatian Ambassador to Russia Tomislav Car said relations between the two countries were slowly becoming dynamic.

“Both the interstate and economic elements are looking forward, which is a message of encouragement to all of us. However, behind all that are people with their knowledge and ambitions,” he said, adding that the embassy and the HGK’s Moscow office were always at entrepreneurs’ disposal.

Russian Ambassador to Croatia Andrey Nesterenko said all efforts must be focused on the normalisation of relations, with emphasis on banking.

In these difficult times it is very important to continue with activities and maintain continuity in relations. It is also important to learn from one another, exchange ideas and thus find new opportunities in this crisis, he said, announcing that the intergovernmental commission on economic cooperation would meet soon.

The forum’s main topic was banking in conditions of the coronavirus pandemic.

Zaher said commercial bank assets at the end of June totalled HRK 444.3 billion, up 4.4% from the end of 2019, while bank profits plunged 48% annually.

The forum was organised by the Association of Russian Banks and the HGK, with the support of the Russian and Moscow Chambers of Commerce and Industry.

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