22 Nov 2023 16:50

Kiev says exporters lose UAH 1 mln each day of downtime at Ukrainian-Polish border

MOSCOW. Nov 22 (Interfax) - Each day of downtime at Ukrainian-Polish border checkpoints prompted by the strike of Polish truckers costs Ukrainian exporters around UAH 1 million, Ukrainian media reported with reference to an express survey of 55 member companies of the European Business Association (EBA).

The total estimated amount of damage caused to the surveyed companies since the start of the blockade has reached at least UAH 305.88 million. Moreover, the situation is causing damage to both importers and exporters, since 49% of these companies import products to Ukraine. As much as 25% of goods are sent to Poland, 15% to Germany, and the rest to Baltic countries, Western European countries, the United States, Canada, Asian and African countries, EBA said in a press release.

"The strike by Polish truckers could significantly complicate and even paralyze the work of multiple companies in Ukraine. This affects confidence, including that of foreign partners, in Ukrainian companies. The demands of Polish truckers, which are addressed not to Ukraine, cause precisely Ukrainian businesses to suffer," EBA Executive Director Anna Derevyanko said.

The blockade of traffic across the border by Polish truckers has already produced numerous negative consequences for businesses in Ukraine and their partners abroad, the EBA said. In particular, this has significantly increased the transportation costs, which affects the cost of production and makes companies less price-competitive. Delivery routes have been changed, which increases the lines of trucks queuing at the Slovak and Hungarian borders, and businesses have been reporting a shortage of transport vehicles, including because carriers are unwilling to take orders during the strike, it said.

Failure to fulfill obligations to Ukrainian and foreign customers will entail penalties from buyers, cancellation of further orders, and loss of customers, and the absence of essential imports of raw materials or components poses risks to Ukrainian producers. All of this immediately impacts the Ukrainian population's access to essential goods and the uninterrupted operation of enterprises, it said.

"The two weeks of the strike has substantially complicated the already limited capabilities of the Ukrainian logistical system," the EBA said. It urged Polish businesses to start a dialogue for unblocking the Polish-Ukrainian border and resolving disputes in a constructive way.