The impact of the depreciation of Russian ruble on import-oriented companies by the example of “Coral-Med”

Russia is a member of BRICS countries with high economic growth for the last decade. The future economic development of Russia strongly depends on import-oriented business, which in turn requires a stable domestic currency. Thus, the subject of research is the impact of the devaluation on import-oriented companies in Russia. The goal of the thesis is to analize the level of impact of current devaluation of Russian rubble on import oriented business in Russia. The methodology that is used in the thesis lies in the analysis of financial indicators of import oriented pharmaceutical company Coral-Med ltd. before and under the current devaluation. In our research we have built an econometric model in order to detect main depreciatory factors. The conducted analysis clearly demonstrated that devaluation caused negative impact on import-oriented business, which lies mainly in the decrease of sales of companies and rise of competition from local producers. The main factors that affect the exchange rate are the interest rate controlled by the Russian Central Bank, exchange rate regime, oil prices and sanctions.