They specialize in Eastern European foods and products.
Their store Moscow upon the Hudson is lined with neatly stacked cans filled with spats fish from Lithuania, and Norwegian cod liver. In the deli case are Ukrainian honey cakes and jars filled with birch tree juice. This is in reference to 1986 Chernobyl nuclear catastrophe.
Since its opening, the store is smaller than a New York hotel room and has served a steady clientele from Russia, Ukraine, Georgia, Serbian and Georgian customers since then. The store survived the Great Recession, and it remained afloat through the pandemic by expanding its online business. Gavrilov is concerned that the conflict in Ukraine and its impact on Eastern European exports could cause his business to stop.
Gavrilov, a 39-year-old Russian immigrant who immigrated to America in 1992 from Georgia with his mother, now 70, said that she doesn’t believe Russia will send anything to America because of the ongoing fighting in Ukraine and Russia. Before she purchased the business, she worked for the store for many years.
Moscow on the Hudson imports about 60% of its products from Russia and Ukraine via distributors based mostly in Brooklyn. Gavrilov stated that vendors are urging customers to place orders as soon as possible for popular products such as Ukrainian candies, Russian cereals and specialty chocolates before stocks run out.
Gavrilov stated, “I am a little concerned I won’t fill it,”
Gavrilov’s is one of many small businesses caught up in the international effort to economically punish Russia for its invasion of Ukraine. The U.S. imported approximately $69 million worth of agricultural products from Russia in 2019. This included snacks, nuts, vegetable oils, and dairy products. These are the items small specialty shops like Moscow on Hudson rely on to stock their shelves. Joe Biden , President, signed Friday an executive order that blocked U.S. imports from Russia of fish, seafood, alcohol, and non-industrial diamonds. Also the U.S. revoked Russia’s “most preferred nation” status. This could result in higher tariffs for some Russian imports. Exports have already been brought to a halt by the constant escalation in the conflict with Ukraine and the ripple effect from other sanctions.
Krasniy Octyabr is a wholesale distributor company in Brooklyn. New orders from Moscow were stopped by Krasniy Octyabr about a week ago after several shipping companies, including OOCL and Maersk, suspended their service to Russia. Grigoriy Katsura, who immigrated from Ukraine in 1990s, owns the company. He said that he has never seen anything similar in 25 years of working in the import industry.
“Everything will rise now because the world has not been normal.”
Katsura imports approximately 300 containers per year of various products, including teas, juices, soda, and sunflower seeds from Eastern Europe. Katsura is the U.S. exclusive distributor for Russian Red October chocolates made by one the oldest candy producers in Moscow. According to him, hundreds of his retail customers have been ordering goods in an attempt to get them before his warehouse that measures 20,000 square feet is empty. He believes he has enough inventory for orders to be filled for six more weeks. He isn’t certain what will happen after that.
Katsura, 45 years old, said that it was difficult to comprehend the plan as people cannot suddenly change their preferences for years in order to make a different plan. “Officially, you can get something similar in Europe, but it will be much more costly.”
Milan Cvjeticanin, a local Eastern European and Balkan market owner, has been selling European specialty foods at the PV Euro Market in Parma since 2004. He stated that almost everything you would find in a grocery store in Ukraine or Poland, Serbia, Croatia or Serbia can be found at PV Euro, including canned fish and Ukrainian breads. He stated that about 20% of his inventory was imported from Russia and Ukraine. This will not be an easy task in the near future.
“The Russia-Ukraine Conflict is going to amplify all those transportation cost rises even more because of the rising energy prices.”
Cvjeticanin, a Yugoslavian who arrived in the U.S. in 1992, stated that import prices rose by 30-40 percent during the pandemic. This was due to supply chain problems and shortages. He has a limit on how much he can absorb because they have already eaten into his slim profit margins. He also said that there is a limit on how high he can increase prices before people stop buying.
He said, “The average citizen is the one who will be paying the highest price.” It breaks my heart.”
Many business owners seek to source products similar to those in Eastern Europe that have not been affected during the war. Arthur Shwarts of Golden Hex, Cary, North Carolina said that he is currently evaluating potential vendors in Poland and the Balkans but has not yet placed any orders. Shwarts has been stocking up on any goods that have a long shelf-life while he evaluates new vendors in Poland and the Balkans.
Shwarts (50), an Armenian immigrant, stated that “Right now, the whole logistics are broken.” “We are trying to survive.”
These small shops are not only facing a shortage of merchandise.
The words “Russian Food”, which were written in large letters on the Hudson’s front windows for many years, were displayed across Moscow. Gavrilov ordered them to be removed after Russia invaded Ukraine. He stated that people mistakenly believe the store is Russian owned and that he didn’t want anyone to break the glass.
Although business has been slow in recent weeks, he said he still has loyal clients. He’ll stock the shelves with products from Poland and Bulgaria if they are unable to get the Russian or Ukrainian products they need. It won’t be easy.
He said that some people become used to it and enjoy certain products near their homes. “It’s sad that some guy wants his millionaire games.”
