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EBA estimates minimum losses of €24.8 million for businesses amid Polish border blockade

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EBA estimates minimum losses of €24.8 million for businesses amid Polish border blockade

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36 member companies of the European Business Association reported that the total cumulative amount of losses due to the strikes at the Ukrainian-Polish border amounted to at least €24.8 million. When calculated per company, this averages almost €700,000, as reported on the EBA website.

In February-March 2024, the association surveyed 44 companies, involving 94 top managers. 67% of them felt the economic consequences of the blockade. Almost all of them reported an increase in transportation costs – 98% of the surveyed companies. Specifically:

  • 23% reported price increases up to 50%;
  • 32% reported increases of 50-75%;
  • 25% reported increases of 75-100%;
  • 16% reported increases of over 100%.

Moreover, due to the strikes, 57% of the surveyed businesses lost orders. On average, companies experienced a 25% decrease in orders. The situation at the border negatively affected both exporters and importers: 66% of the respondents are engaged in exports, while 91% are involved in imports.

In addition to direct financial losses, companies reported the negative impact of the strikes on current and future contracts, damage to business reputation, threats to food security, supply chain disruptions, price increases, reduced competitiveness, increased warehouse costs, warehouse overcrowding, and the threat of production stoppage and even business closure.

Initially, Polish carriers began blocking the Polish-Ukrainian border on November 6 due to the "transport visa" issue. They demanded the return of permits for Ukrainian carriers and the cancellation of the e-line for Polish carriers. They reached an agreement with the government in mid-January and stopped protesting.

Then, the blockade was carried out by Polish farmers who considered the EU's position on importing agricultural products from Ukraine unacceptable and were disappointed with the passivity of the Polish government, which, in their opinion, did nothing to protect their interests.

The farmers' strikes continued in Poland from February 9. They protest against the reduction of EU subsidies for agriculture, the "green" course of the EU, and the import of Ukrainian agricultural products. It is worth noting that farmers protest not only in Poland but also across Europe, including in Germany, Spain, and Greece.

Since November, Ukraine's state budget has lost 9.3 billion hryvnias due to the strike, as reported by the Chairman of the Committee of the Verkhovna Rada on Finance, Tax, and Customs Policy, Danylo Hetmantsyev. Additionally, two Ukrainian drivers died during the blockade.

The Odessa Journal
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