The export of products of Ukrainian businesses has become unprofitable due to a significant increase in the amount of logistics costs.
Due to the blockade of ports, Ukrainian businesses are experiencing serious logistics problems, making it unprofitable to export products abroad. Yury Ryzhenkov, General Director of Metinvest, spoke about business problems in conditions of war and ways to solve them in an interview with the European Business Association.
“We have already blocked the Black Sea ports, which was traditional for exports not only to Asia, but also to Europe. Now we use land border crossings in the west. When we started, it was 2-3, now it is 13. them, and this number is increasing.Here we must thank Ukrzaliznytsia, which is expanding the number of these crossings.But, of course, it does not meet Ukraine’s need for transportation.Rail tariffs in Ukraine are relatively “In addition, we have rail tariffs in Europe that are even higher than in Ukrainian. If we include all this, then it is not profitable for us to supply ore to China,” he explained.
In this regard, Rizhenkov noted that the authorities must decide whether they want to profit from high transportation tariffs or to enable businesses to thrive and make the country competitive in world markets.
“The authorities need to not only talk about starting the economy, but also do what they say. Because we talk a lot about deregulation or tax cuts, encouraging investment. But if we look at what they are doing, everything is And the European Union and Ukraine must decide – what do we want? Or do we want to make big money on logistics services provided to producers of ore, grain. Or do we want to restart the economy and provide an opportunity to Then the benefits are needed For these transports.Therefore, it is a joint activity between the state, logistics companies and companies, like us, that have such minerals, grains or other objects that needs to be given to foreign markets, ”Ryzhenkov concluded.
According to the survey of the National Bank, the main reason for the reduction of production of enterprises are the difficulties in logistics and the associated loss of markets.
A survey by the Ministry of Digital Development shows that about 47% of companies have stopped working because of the war, and only 6% have adapted to it.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.