Business news from Ukraine

Ukraine has exported over 136 mln tons of goods through ‘solidarity corridors’

“Solidarity corridors” have allowed Ukraine to export more than 136 million tons of products such as grain, ore and steel since 2022 and import more than 52 million tons of goods, including fuel, vehicles, fertilizers, as well as military and humanitarian aid, pap.pl reports, citing the European Commission.

“In 2022, the EC, in cooperation with Ukraine and Moldova, created the so-called solidarity corridors to improve the operation of EU-Ukraine-Moldova transport routes after Russia’s invasion of Ukraine. These are alternative logistics routes that allow for the transportation of goods by rail, road, and inland waterway. The corridors, created to circumvent Russia’s blockade of Ukrainian grain exports through the Black Sea, now cover trade in all sectors,” the European Commission reminded.

“Solidarity Corridors” allow Ukraine and Moldova to export all types of goods to world markets and ensure the delivery of necessary products to Ukraine, the EC explained. These routes pass through the Danube region, Poland, the Baltic States and the Adriatic region. They complement the Black Sea route created by Ukraine in the fall of 2023.

The European Commission is convinced that the Danube Corridor and the Polish-Baltic Corridor are crucial for all imports, while the Adriatic Sea is of particular importance for Ukraine’s non-agricultural exports.

The European Union and international financial institutions have so far allocated more than EUR 2 billion to these routes. Large-scale projects include EU funding to improve navigation on the Danube and the Sulyn Canal to the Black Sea. River pilots have been trained with EU funds. In addition, information exchange with Ukrainian ports has been improved. This cooperation has helped to increase the safety and capacity of Danube navigation.

“Two years ago, the Solidarity Corridors changed logistics routes in Eastern Europe to support the functioning of the economies of Ukraine and Moldova and prevent a global food crisis. To date, they have brought about EUR 50 billion in revenue to businesses and at the same time strengthened Ukraine’s economic ties with the EU,” said European Commissioner Adina Valian.

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European Commission has allocated more than EUR120m to Romania to develop ports for Ukrainian grain exports

The European Commission (EC) is allocating EUR126 million to Romania in 2024 under the “solidarity corridors” program to invest in the development of ports facing an increase in Ukrainian exports, according to its website.

“The funds will allow Romania to reduce bottlenecks created by the sudden increase in the number of goods arriving at ports along the Danube and Black Sea coasts. The funding will help port operators to handle and store goods, thus reducing the blockade caused by Russia’s war against Ukraine. “This will contribute to the EU’s ‘solidarity corridors’ action plan without disrupting excessive competition in the single market,” said Margrethe Vestager, the European Commission’s vice-president for competition policy.

According to the report, all logistics companies that operate in Romanian ports located on the EU eastern border (Constanta, Galati, Giurgiu), on the Danube-Black Sea canal (Poarta Alba, Midia and Navodari) and the Sulina Canal, in the “satellite ports” of Constanta (Midia and Mangalia) will be able to receive grants of up to EUR10 million.

Operators will receive the assistance needed to cover the additional costs of equipment and storage facilities to handle cargo deviating from their normal trade routes.

The funding has been made available at the request of Romania, which has notified the European Commission of its plans to support companies in Romanian ports to invest in additional handling or storage capacity to process goods from Ukraine. The EUR126m scheme will run until December 31, 2024.

As reported, thanks to increased shipments from Ukraine, the Black Sea Romanian port of Constanta recorded the highest grain exports in 2023 – 36 million tons, up 50% from a year earlier. Ukrainian grain accounted for about 40% of the total, or 14 million tons, up from 13 million at the end of November and from 8.6 million for the whole of 2022.

Romania is making efforts to increase its transit capacity to bring Ukrainian grain handling to 4 million tons per month, for which it is upgrading rail and road infrastructure in and around the port. Ukraine and Romania agreed to launch an additional anchorage for Ukrainian agricultural products in the port of Constanta.

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