UAH 1 million – average daily losses of EBA companies due to the strike at the Polish border

21/ 11/ 2023

The European Business Association conducted a quick survey among 55 member companies whose operations were affected by the strike at Polish-Ukrainian border crossing points that began on November 6. According to the EBA, on average, one day of downtime costs one company about UAH 1 million in losses. The total estimated amount of losses incurred by the surveyed companies since the beginning of the downtime is at least UAH 305,880,000. At the same time, both importers and exporters are equally affected, as 49% of companies import products to Ukraine. At the same time, 25% of the goods go to Poland, 15% to Germany, as well as to other Baltic countries, Western Europe, the United States, Canada, Asia and Africa. The blocking of traffic at the border by Polish carriers has already led to numerous negative consequences for businesses in Ukraine and their counterparties abroad. Transportation costs are increasing significantly, which affects the cost of production and price competitiveness of companies. There is a change in routes, while queues at the Slovak and Hungarian borders are growing. Businesses are already reporting a shortage of transportation, including due to the reluctance of carriers to take orders during the strike. Failure to fulfill obligations to Ukrainian and foreign customers will result in penalties from buyers, cancellation of further orders, and loss of customers. The inability to import the necessary raw materials or components poses risks to Ukrainian production facilities. All this directly affects the access of the population in Ukraine to the necessary goods and the smooth operation of enterprises. The two weeks of strike action have created significant challenges for the already limited capacity of Ukrainian logistics. Therefore, the business community of Ukraine once again calls on Polish businesses to engage in a dialogue to unblock the Polish-Ukrainian border and constructively resolve disputes. Anna Derevyanko. Executive Director of the European Business Association. What is important is that the strike of Polish carriers can significantly complicate and even paralyze the work of many companies in Ukraine. This affects the trust of foreign partners in Ukrainian companies, among other things. It is Ukrainian business that is suffering because of the demands of Polish carriers, which, moreover, are not addressed to Ukraine. We are convinced that this is not the goal of our partners in Poland and the EU, so we urge them to resolve the situation constructively.

The total estimated amount of losses incurred by the surveyed companies since the beginning of the downtime is at least UAH 305,880,000. At the same time, both importers and exporters are equally affected, as 49% of companies import products to Ukraine. At the same time, 25% of the goods go to Poland, 15% to Germany, as well as to other Baltic countries, Western Europe, the United States, Canada, Asia and Africa.

The blocking of traffic at the border by Polish carriers has already led to numerous negative consequences for businesses in Ukraine and their counterparties abroad. Transportation costs are increasing significantly, which affects the cost of production and price competitiveness of companies. There is a change in routes, while queues at the Slovak and Hungarian borders are growing. Businesses are already reporting a shortage of transportation, including due to the reluctance of carriers to take orders during the strike. Failure to fulfill obligations to Ukrainian and foreign customers will result in penalties from buyers, cancellation of further orders, and loss of customers. The inability to import the necessary raw materials or components poses risks to Ukrainian production facilities. All this directly affects the access of the population in Ukraine to the necessary goods and the smooth operation of enterprises.

The two weeks of strike action have created significant challenges for the already limited capacity of Ukrainian logistics. Therefore, the business community of Ukraine once again calls on Polish businesses to engage in a dialogue to unblock the Polish-Ukrainian border and constructively resolve disputes.

Anna Derevyanko Executive Director of the European Business Association

What is important is that the strike of Polish carriers can significantly complicate and even paralyze the work of many companies in Ukraine. This affects the trust of foreign partners in Ukrainian companies, among other things. It is Ukrainian business that is suffering because of the demands of Polish carriers, which, moreover, are not addressed to Ukraine. We are convinced that this is not the goal of our partners in Poland and the EU, so we urge them to resolve the situation constructively.