Business proposes to establish “green corridors” for all Ukrainian products to EU ports

18/ 08/ 2023

According to business estimates, since the beginning of the war initiated by russia on the territory of Ukraine due to the blockade and destruction of the infrastructure of Ukrainian seaports, Ukraines economic losses amount to around 18 billion dollars in foreign exchange earnings and 135 billion hryvnias in missed tax revenues. However, the decline of the domestic economy and the global food crisis risk becoming even more acute due to: russias withdrawal from the grain initiative; a trade blockade in the Black Sea waters; airstrikes on the infrastructure of Ukrainian ports, including those located in the Danube Delta, which has recently become a logistical alternative. As demonstrated by various surveys conducted by the European Business Association among its members, businesses continue to operate in the country but are seeking alternatives to sustain their operations. In this context, the focus is on alternatives to the blocked seaports of Ukraine. For instance, exporters are forced to redirect their cargo flows towards western border crossings and ports in Europe. At the same time, due to the limited capacity of the railway infrastructure, there is still some competition among different types of cargo. Undoubtedly, Ukrainian agricultural production is of utmost importance to millions of people worldwide and contributes to global food security. Simultaneously, other sectors crucial to the countrys economy, budget revenues in the form of taxes, etc., have been and remain geared towards export potential, notably the mining and metallurgical complex. Therefore, establishing alternative export routes is highly pertinent for them as well. Recently, the EBA appealed for the implementation of green corridors for the export of Ukrainian agricultural products to the ports of Baltic countries, Germany, the Netherlands, Croatia, Italy, and Slovenia. However, considering the significance of other industries for the countrys economic landscape, the European Business Association is reaching out to the Prime Minister of Ukraine, Denys Shmyhal, and the Deputy Prime Minister for Restoration of Ukraine – Minister for Communities, Territories and Infrastructure Development of Ukraine, Oleksandr Kubrakov, urging them to facilitate the establishment of equitable logistical conditions for all sectors of the economy by introducing green corridors for all Ukrainian products to the ports of EU countries. Specifically, this pertains to, firstly, the establishment of logistical corridors utilizing and expanding the capabilities of EU countries (road, rail, and port infrastructure) to maximize the volume of exports of Ukrainian-origin goods. Secondly, the potential application of support mechanisms (provision of privileges, subsidies, etc.) to prevent the escalation of logistical expenses for Ukrainian exporters and, consequently, to ensure the economic viability of exports. Thirdly, optimizing the execution of customs, sanitary, and veterinary formalities, eliminating possible logistical barriers in order to prevent congestion at border checkpoints and transit routes. We sincerely hope that the businesss proposals will be heard!

However, the decline of the domestic economy and the global food crisis risk becoming even more acute due to: russia’s withdrawal from the grain initiative; a trade blockade in the Black Sea waters; airstrikes on the infrastructure of Ukrainian ports, including those located in the Danube Delta, which has recently become a logistical alternative.

As demonstrated by various surveys conducted by the European Business Association among its members, businesses continue to operate in the country but are seeking alternatives to sustain their operations. In this context, the focus is on alternatives to the blocked seaports of Ukraine. For instance, exporters are forced to redirect their cargo flows towards western border crossings and ports in Europe. At the same time, due to the limited capacity of the railway infrastructure, there is still some competition among different types of cargo.

Undoubtedly, Ukrainian agricultural production is of utmost importance to millions of people worldwide and contributes to global food security. Simultaneously, other sectors crucial to the country’s economy, budget revenues in the form of taxes, etc., have been and remain geared towards export potential, notably the mining and metallurgical complex. Therefore, establishing alternative export routes is highly pertinent for them as well.

Recently, the EBA appealed for the implementation of “green corridors” for the export of Ukrainian agricultural products to the ports of Baltic countries, Germany, the Netherlands, Croatia, Italy, and Slovenia.

However, considering the significance of other industries for the country’s economic landscape, the European Business Association is reaching out to the Prime Minister of Ukraine, Denys Shmyhal, and the Deputy Prime Minister for Restoration of Ukraine – Minister for Communities, Territories and Infrastructure Development of Ukraine, Oleksandr Kubrakov, urging them to facilitate the establishment of equitable logistical conditions for all sectors of the economy by introducing “green corridors” for all Ukrainian products to the ports of EU countries.

Specifically, this pertains to, firstly, the establishment of logistical corridors utilizing and expanding the capabilities of EU countries (road, rail, and port infrastructure) to maximize the volume of exports of Ukrainian-origin goods. Secondly, the potential application of support mechanisms (provision of privileges, subsidies, etc.) to prevent the escalation of logistical expenses for Ukrainian exporters and, consequently, to ensure the economic viability of exports. Thirdly, optimizing the execution of customs, sanitary, and veterinary formalities, eliminating possible logistical barriers in order to prevent congestion at border checkpoints and transit routes. We sincerely hope that the business’s proposals will be heard!