Business has called on the EU Commission and Parliament to resolve the situation at the borders

16/ 06/ 2022

The European Business Association in Ukraine and the European Business Association in Moldova call on the European Commission and the European Parliament to help resolve the situation at the borders of Ukraine, Moldova, and Romania, caused by the war. Business has to face changes in supply chains, primarily due to the blocked Black Sea ports, limitations on export and import operations, insufficiently developed border infrastructure for large volumes of cargo, and rising prices of fuel and energy resources – this is by no means a complete list of war-related difficulties in the business and economic environment. Meanwhile, the blockade of Ukrainian ports is an acute and dire issue that has caused huge queues on the Ukrainian, Moldovan and Romanian borders - as export and import traffic has now shifted to land transport. Thus, the queues on the Ukraine-Moldova border and, then, the Moldova-Romania border reached 15-20 km in both directions at times, resulting in more than 60 hours of customs clearance. Besides, the border crossing across the Prut River is limited to only two trucks in both directions at a time. There is also a limitation on the size of staff, namely, at the Romanian border. There, it is necessary to ensure the required number of food safety officers at all Romanian customs clearance points. Therefore, the two business associations have called for the European authorities to take appropriate measures in order to maintain the proper level of economic activity, streamline supply chains, and ensure food security and fuel supply. After all, due to significant delays, foreign investors are beginning to study other markets as alternative plans for the redistribution of their operations, for example, the one in Moldova. In particular, there are proposals to introduce a common customs clearance procedure at the Moldova-Romania border, strengthen the existing traffic flow infrastructure at the border (IT, SPS checks, etc.) – to avoid systemic failures and technical deficiencies, simplify phytosanitary and veterinary control procedures for barges crossing the Romanian border in Galaţi when the grain is transported on the Danube River. We hope that the voice of business will be heard and urgent issues will be promptly resolved so that economic activity continues because Ukraine needs to stay strong on the economic front now!

Business has to face changes in supply chains, primarily due to the blocked Black Sea ports, limitations on export and import operations, insufficiently developed border infrastructure for large volumes of cargo, and rising prices of fuel and energy resources – this is by no means a complete list of war-related difficulties in the business and economic environment.

Meanwhile, the blockade of Ukrainian ports is an acute and dire issue that has caused huge queues on the Ukrainian, Moldovan and Romanian borders – as export and import traffic has now shifted to land transport. Thus, the queues on the Ukraine-Moldova border and, then, the Moldova-Romania border reached 15-20 km in both directions at times, resulting in more than 60 hours of customs clearance. Besides, the border crossing across the Prut River is limited to only two trucks in both directions at a time. There is also a limitation on the size of staff, namely, at the Romanian border. There, it is necessary to ensure the required number of food safety officers at all Romanian customs clearance points.

Therefore, the two business associations have called for the European authorities to take appropriate measures in order to maintain the proper level of economic activity, streamline supply chains, and ensure food security and fuel supply. After all, due to significant delays, foreign investors are beginning to study other markets as alternative plans for the redistribution of their operations, for example, the one in Moldova.

In particular, there are proposals to introduce a common customs clearance procedure at the Moldova-Romania border, strengthen the existing traffic flow infrastructure at the border (IT, SPS checks, etc.) – to avoid systemic failures and technical deficiencies, simplify phytosanitary and veterinary control procedures for barges crossing the Romanian border in Galaţi when the grain is transported on the Danube River.

We hope that the voice of business will be heard and urgent issues will be promptly resolved so that economic activity continues because Ukraine needs to stay strong on the economic front now!