Ukrainian exports by road via Poland down 39% in Nov, but this still the main route

MOSCOW. Dec 4 (Interfax) - Ukrainian exports by road via Poland fell 39.3% in November compared with October to 282,300 tonnes due to the blockade of several border crossings between the two countries.

Imports fell 44.6% to 511,600 tonnes, Ukrainian media outlets said, citing data from the State Customs Service reported by First Deputy Prime Minister and Economy Minister Yulia Sviridenko on social media.

The biggest drops were via the checkpoint between Yagodin in Ukraine and Dorohusk on the Polish side, with exports by truck plummeting almost 80% to 32,400 tonnes and imports 67.7% to 113,700 tonnes.

Ukrainian exports through the checkpoint between Rava Russka in Ukraine and Hrebenne in Poland fell 46.5% to 44,600 tonnes and imports 55.9% to 76,800 tonnes.

Road export through the checkpoint between Krakovets in Ukraine and Korczowa in Poland, blocked since November 6 like the two aforementioned points, fell 10% to 112,500 tonnes and imports 39.7% to 127,400 tonnes.

Exports through Shegini in Ukraine and Medyka in Poland, blocked from the Polish side starting on November 22 and round the clock from November 27, fell 6.9% to 88,300 tonnes while imports increased 13.7% to 148,600 tonnes.

The remaining four checkpoints on the border with Poland, where there is no heavy vehicle traffic, saw 4,400 tonnes of exports and 41,500 tonnes of imports in November.

Despite this decline, Poland remains the main route for both exports and imports by road. As a result, Ukraine's total exports by automobile transport in November fell by 26.7% to 783,000 tonnes while imports fell 23.5% to 967,100 tonnes.

Exports via Slovakia, from which the only checkpoint has been blocked by Slovak truckers since December 1 following several warning strikes in November, fell 6.9% in November to 66,200 tonnes, while imports increased 29.1% to 88,300 tonnes.

Exports by road via Hungary rose 0.3% to 163,200 tonnes and imports increased 39.4% to 137,500 tonnes.

Exports via Romania fell 6.4% to 203,700 tonnes with a slight increase in imports of 0.4% to 242,800 tonnes, while exports and imports through Moldova decreased by 11.8% and 13.4%, respectively, to 157,500 tonnes and 116,200 tonnes.

"We are working hard to resolve this situation. Not all of it can be made public, because publicity does not always work in the country's favor. But we have grounds to hope that we will be able to resolve the situation through this dialogue on both sides," Sviridenko said, without saying when the blockaded might be lifted.

The Ukrainian Finance Ministry said that due the blockade by Polish truckers resulted in a State Customs Service revenue shortfall of 22% or UAH 9.3 billion in November, compared with just 1.6%, or UAH 0.7 billion in October, with VAT from imports in November falling to UAH 30.8 billion from UAH 38.6 billion in October, and revenues from import and export duties falling to UAH 2.2 billion from UAH 2.9 billion.

The number of blocked crossings on the border with Poland may increase to five, including Nizhankovichi-Malhowice, the Ukrainian State Border Service has said.

The situation for the Ukrainian agro-industrial complex, which exports more than 70% of its agricultural products, is becoming alarming in light of problems with transportation through Poland, Ukrainian First Deputy Agrarian Policy and Food Minister Taras Vysotsky has said.

A key demand of the protest organizers is to resume the issuance of permits to Ukrainian carriers and the reduction of their number to the pre-crisis level, when up to 200,000 licenses were issued each year. They also want empty Polish trucks returning from Ukraine to Poland to cross the border without waiting for 10-12 days. Another demand is stricter rules of transportation by CEMT (European Conference of Ministers of Transport permits). Polish transport industry representatives have said Ukrainian carriers operating on the European market was leading to the collapse in tariffs for cargo transportation.

According to Kiev, Ukrainian carriers operate mainly from and to Ukraine, and not between European countries. Their work cannot influence freight rates in Europe. Most of the demands of Polish carriers are impossible to fulfill, according to the Ukrainian side. Negotiators on the Ukrainian side expect that a decision to unblock the border will be reached after the appointment of the new government in Poland, sworn in on November 27.