Ukrainian businesses lose $28,000 daily due to Polish blockage

Blocking the border by Polish carriers has already led to negative consequences for business
Blocking the border by Polish carriers has already led to negative consequences for business

Polish carriers blockading border crossings with Ukraine are causing Ukrainian businesses to each lose UAH 1 million ($28,000) in revenue every day, Ukraine’s European Business Association (EBA) reported on Nov. 21, citing data from 55 companies.

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The data comes from an express survey of Ukrainian firms conducted by the EBA. The total estimated losses for these companies since the beginning of the stoppage are approximately UAH 305.88 million ($8.5 million).

The survey shows that both importers and exporters are suffering losses. Transportation costs are rising, affecting the cost of production and the companies' price competitiveness. There is a shift in transportation routes, with increased queues seen at the Slovak and Hungarian borders.

Businesses report a shortage of transportation options due to carriers' reluctance to accept contracts during the strike for fear of being unable to fulfill their commitments to customers, leading to potential penalties. In addition, the inability to import necessary raw materials or components poses risks to Ukrainian manufacturing.

“The strike by Polish carriers could significantly complicate and even paralyze the operations of many companies in Ukraine,” Anna Derevyanko, EBA’s Executive Director.

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“This affects trust, including that of foreign partners in Ukrainian companies.”

On Nov. 6, Polish truckers blocked three border checkpoints for freight transport: Korczowa-Krakowiec, Grebenne-Rava-Ruska, and Dorohusk-Yahodyn. They plan to continue striking until Jan. 3.

Read also: Over 2,500 trucks backed-up at border blocked by striking Polish truckers, lines still growing

On Nov. 13, Ukraine was unable to reach an agreement with the Polish carriers to unblock the border. By Nov. 16, the European Commission announced it might initiate punitive proceedings against Poland.

On Nov. 21, Slovak carriers similarly blocked a border crossing with Ukraine.

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Read the original article on The New Voice of Ukraine