Economy

The war in Ukraine has created an unprecedented stress test for the global freight supply chain. Particularly acute was the issue of importing containers, which in February were already en route to Ukraine.

On Thursday, June 16, 2022, the 46th President of the United States, Joseph Biden, signed into law S. 3580, the Ocean Shipping Reform Act of 2022.

The Verkhovna Rada ratified the Agreement on the abolition of import duties and tariff quotas in bilateral trade between Ukraine and the UK.

Ukraine is looking for new logistical options for the import of diesel fuel – farmers offer to transport it in flexitanks.

Before the start of the full-scale war, 75% of Ukraine’s foreign trade was carried out at sea ports. From February 24, 2022, they are all blocked. However, it was not a verdict. On the contrary, we see that companies have begun to look for alternative ways to establish logistics chains.
Can rail and road transport replace sea transport? What is the government doing to help exporters export products, and how did the war change Ukrainian trade? This was discussed on May 18 during the online discussion of the Southern Ukrainian office of the European Business Association “Logistics and international trade in Ukraine in conditions of war”.

There has formed a congestion of about 90 ships near the sea channel Sulina. The Romanian side does not cope with the problem and ignores the proposals of the Ukrainian port workers.

Since the world’s largest container carriers refused to work with the aggressor country, russia needs to look for new ways for container traffic. The European embargo on a number of russian raw materials and the closure of many ports for russian vessels also forces russia to look for new partners for trade. China became the hope for russian federation in this matter. But the plans of russian federation were hindered by another outbreak of COVID-19 in the People’s Republic of China, which blocked Chinese ports for an indefinite period.

In response to the military aggression of russian federation, in March the Verkhovna Rada adopted a law on the nationalization of the property of russian legal entities and individuals in Ukraine – movable and immovable, as well as funds, deposits in banks, securities, corporate rights and other assets. Among the objects that fall under alienation are large enterprises with a billion annual profits.

A number of exceptions remain in the new EU sanctions against Russia, creating opportunities for circumvention.

The European Commission predicts an increase in grain exports from Europe to make up for the shortage of Ukrainian wheat on the world market.