No entry: who will suffer from the prohibition of transit through Ukraine

Today banned Ukrainian government?

Ukraine from February 15, suspended the transit of Russian trucks of transport companies on their territory. If the truck belongs to foreign logistics companies but travels to Russia, on the border to stop her.

Why Ukraine has banned the entry of Russian trucks?

The decision the government took in response to a similar ban, which the Ministry of transport introduced on the eve of the Ukrainian carriers. The transport Ministry explained that its decision was also a response to the actions of the Ukrainian activists who in the end of last week started to block the movement of Russian trucks for political reasons.

In Kiev the decision of the Ministry of transport was perceived as a violation of international agreements — procedures of the world trade organization and bilateral intergovernmental agreements on road transport. Russia unilaterally stopped the movement of Ukrainian trucks on its territory, said the press service of the Cabinet of Ministers. The trucks will be blocked “until the receipt of explanations from the Russian side and resolve this issue.”

Prime Minister Dmitry Medvedev at a meeting with Deputy Prime Ministers called Ukrainian activists blocking Russian trucks, “crazy” and “bandits”, and the prohibition of Kiev on the movement of trucks was described as a legalization of their actions. According to Deputy Prime Minister Arkady Dvorkovich, about 100 Russian trucks remain on the territory of Ukraine, more than 500 vehicles cannot travel from the EU to the territory of Ukraine and Belarus back to Russia.

As you go Russian trucks?

Travel Russian trucks is closed not only through Ukraine, but through Poland — that is the overland route to Russia is closed. From 1 February 2016 the authorities of Poland and Russia are unable to agree on the number of permits for the entry of trucks in 2016, the country is still negotiating. According to the representative of the international transport group TELLS (the fleet consists of 170 cars) Andrew Pavlyuchenko due to the overlap of Poland has resulted in an increased transit flow through Ukraine. “Before, Ukraine was a transit country for South stream — cargo in Italy, Slovenia, Hungary. After the closure of the Polish transit through Ukraine drove trucks in Germany, France and other European countries,” he says.

Now the Russian carriers only have one option — to follow through the territory of the Baltic countries, and then to sail on the ferry. It will be much more expensive: according to Pavlyuchenko, the price of the ferry, the two parties exceeds €1200, and the total cost of transportation, for example, from Central Russia to Germany and back, averaged €3500. Previously, General Director of “Russian transport lines” calculated for that if the trucks have to overcome part of the way to Germany by ferry, it will require €600 to €1000 additional costs for the flight.
At the same time the head of the Association of international road carriers (ASMAP) Evgeny Moskvichev said that Russian carriers made 160 thousand trips through the territory of Poland. If each will rise to at least €600, the costs of Russian transportation companies in 2016 will grow by at least €96 million (7.6 billion rubles at the exchange rate at 15 February) in 2016.

What we carry through Ukraine?

According to the international trade Centre (ITC), most of the cargo from Europe to Russia deliver Germany, Italy, France, the Netherlands and Spain. In 2015 from these countries imported goods to $34 billion, of which $18.4 billion were in Germany. From there import equipment and parts for it, parts for cars, medicines, plastics and metal and more. Also among the leaders of Italy and France, where in 2015 in Russia imported goods to $8.3 billion and $5.9 billion respectively. Mostly of these countries imported industrial equipment, household appliances, medicines, cosmetics, wine, shoes and furniture.

A large return flow from Russia to Europe, no, explained previously the CEO of the company “Russian transport lines” Konstantin Skovoroda. In Germany, the Russian truck is often empty, he said.

According to General Director FM Logistic Customs Alexey Misailov, transit through Ukraine were rubber products, e.g. tyres from Hungary. Also brought home appliances, electronics and accessories for her, household chemicals and other goods of daily demand, he adds. Ukraine is also driven mainly consumer goods, has ceased to carry only products because of the sanctions, said Michailov.

Is under threat of Russian-Ukrainian trade — despite all restrictions, the trade between Russia and Ukraine continued. According to the international trade Centre (ITC), in 2015 Ukraine took the 8th place on the import to Russia in 2015, however, the volume of products imported from this country decreased by half compared to 2014 — from $10.7 bn to $ 5.7 bn From Ukraine to Russia mainly imported building materials, metal products, paper, cardboard, industrial equipment and furniture.Last year all logistics were carried out mainly by Ukrainian carriers, the Russian company did not want to go to Ukraine because of security threats”. — says the General Director of FM Logistic Customs Alexey Misailov. Russian exports to Ukraine are mainly goods, which are unlikely to take the truck — oil, coal, nuclear fuel, minerals, and fertilizers.

Russian-Ukrainian trade these prohibitions is unlikely to interfere, said Masalov, in this direction work mainly Serbian, Hungarian or Romanian carriers.

Who will benefit from the situation?

Trucking from Russia to Europe are actively engaged in the company from Russia, Poland, Lithuania, Belarus and — to a lesser extent — Ukraine, said Pavlyuchenko. To avoid problems at the border, the customer can refuse the services of Russian logistics companies for the benefit of the Belarusian and Baltic shipping companies, involves Masalov.