Indian pharma companies worried over impact of Russia-Ukraine crisis

Following sanctions on Russian banks, it is being feared that remittances of outstanding trade receivables from that country can be impacted, an ET report said.

More sanctions are likely are likely to be announced, western companies have indicated.

UK Prime Minister has already announced largest ever sanctions targeting banks, members of President Vladimir Putin's closest circle and wealthy Russians who enjoy high class London lifestyles.

Announcing a 10-point sanctions package, the British government said it would impose an asset freeze on some major Russian banks, including state-owned VTB, its second-biggest bank, and stop major Russian companies from raising finance in Britain, Reuters reported.

Going a step ahead of other western countries, Johnson demanded Russia's exclusion from SWIFT, the inter-bank messaging network which is the backbone of international finance - a demand made by Ukraine.

Dr Reddy's and Sun Pharma have significant front-end presence in both Russia and Ukraine.

Both companies are are closely monitoring the situation, adding that their primary focus at the moment is to ensure safety of employees, the ET report said.

India had exported pharmaceuticals worth $591 million to Russia and worth $182 million to Ukraine in 2020-21, as per Pharmaceuticals Export Promotion Council (Pharmexcil) under the commerce department.

If the sanctions against Russia by the West escalate, then the pharma industry may find it hard to do any business there, Dinesh Dua, former chairman of Pharmexcil and CEO of Nectar Lifesciences said.

Russia accounts for 2.4 percent of total pharmaceutical exports from the country while Ukraine has a share of 0.74 percent, according to the report.