New sanctions against Belarus: how they will affect barrel saunas imports

The new European Union sanctions against Belarus, which will enter into force on 2 October 2024, will affect a wide range of industries, including the supply of prefabricated buildings (code 9406). This means that Belarusian exports of baths and other constructions to EU countries will cease after this date. The sanctions are linked to the EU's efforts to isolate the Belarusian regime because of its support for Russia's war in Ukraine.

What are the sanctions for code 9406?

According to the EU regulation, code 9406 includes prefabricated buildings, which can include modular homes and industrial buildings, as well as the popular Belarusian prefabricated baths. This product category is particularly popular among European construction companies and individual consumers, especially because of its good quality and competitive price.

However, the sanctions in force prohibit the direct or indirect export of prefabricated buildings (including baths) from Belarus. This includes both the sale of goods and the provision of technical assistance and financial services on related matters

Cessation of imports of baths: what does it mean for consumers?

These sanctions mean that as of 2 October, baths from Belarus are no longer available on the EU market. As a result of these restrictions, consumers wishing to buy prefabricated baths will have to look for alternatives from other countries that are not affected by the sanctions. This may lead to price increases and longer delivery times, as Belarusian manufacturers have been well established in this niche thanks to their long experience and technological solutions.

Alternatives and market challenges

Consumers will need to find new sources of supply from the EU or other countries outside the sanctions area. However, the sanctions against Belarus provide an opportunity for EU domestic producers to increase their market share, although this may be delayed by the need to expand production capacity.

The industry may face further difficulties in the future as increased demand from other countries may lead to problems with production capacity and supply of raw materials.

Alternatives and market challenges

In view of the new EU sanctions against Belarus, many European manufacturers are starting to expand their production capacity to meet the increased demand for baths. As exports of Belarusian baths have been disrupted, local producers have rushed to fill the resulting niche market. Investments are being made to modernise production lines and introduce new technologies, which will not only meet the needs of the domestic market, but will also allow the successful export of these products to other European countries. This preparation will avoid shortcomings and help consumers to obtain quality products more quickly.

Conclusion

The EU sanctions against Belarus, which entered into force on 2 October, will have a significant impact on the construction sector, including the import of baths. European consumers will lose access to Belarus' renowned sauna products, which could lead to price increases and longer delivery times. Meanwhile, the market is opening up new opportunities for European producers seeking to fill the gap.