Ukraine’s Economy Suffers Over €1.5 Billion Loss Due to Western Border Blockade

by Roman Cheplyk
Tuesday, January 23, 2024
Ukraine’s Economy Suffers Over €1.5 Billion Loss Due to Western Border Blockade

Denis Marchuk, Deputy Chairman of the All-Ukrainian Agrarian Council, reported significant economic losses for Ukraine, exceeding €1.5 billion, due to the blockade of its western borders

This information was shared during a briefing at the Ukraine Media Center.

  • Economic Impact: The losses, which primarily affected November and December, were not only financial but also led to Ukrainian entrepreneurs losing contracts and customers in Europe due to delayed deliveries.
  • Decreased Agricultural Exports: The blockade resulted in a 40% reduction in agricultural exports via motor vehicles. Exporters from Ukraine's western regions, who typically rely on land routes for product delivery to Europe, were particularly hard-hit.
  • Border Blockades: The blockades began on November 6 with Polish transporters halting truck movements at major checkpoints like "Korchova - Krakivets," "Grebenne - Rava-Ruska," and "Dorogusk - Yagodin." The primary demand was reinstating permits for Ukrainian carriers, which had been waived under an EU agreement until June 30, 2024.
  • Resolution of Blockades: As of January 20, traffic resumed at several checkpoints, including "Medyka - Shegyny" in Poland and others that were previously blocked by Romanian farmers, like "Siret," "Vikovu-de-Sous," and "Dyakove - Halmeu."

The blockade of western borders has thus had a considerable impact on Ukraine's economy, particularly in terms of export capabilities and international trade relations.

You will be interested