MP: Ukraine may lose 1% of GDP growth due to blockade on Polish border

MP: Ukraine may lose 1% of GDP growth due to blockade on Polish border

The blocking of road checkpoints on the border between Poland and Ukraine due to the strike of Polish carriers, which has been going on for four weeks, could lead to a 1% slowdown in Ukraine's economic growth in 2023.

This was stated by Yulia Klymenko, First Deputy Chair of the Verkhovna Rada Committee on Transport and Infrastructure, during a roundtable discussion "Border Blocking is a Threat to National Security" at Ukrinform.

"If we look at the figures published in the media, we lost UAH 1.4 billion in export turnover during the 26 days of the strike by Polish carriers. In October, exports amounted to UAH 5.2 billion, and in November they were UAH 3.8 billion. The difference may be partly due to seasonal fluctuations. But there are various estimates that this strike will cost us 1% of our GDP. That is, if we were supposed to grow by 3.5% this year, we will grow, for example, by 2.8% or 2.5%. This is a lot," she said.

Read also: 2,100 trucks in queues at border with Poland

Klymenko emphasized that the problem of blocking border crossing points concerns not only logistics companies, but also the economic and national security of Ukraine as a whole.

"Businesses are not receiving enough components, supply chains are disrupted. This also applies to military equipment and its production. You know that we import most of the components from different countries through the borders of our neighbors. To even assemble drones in Ukraine, you need to bring them in from somewhere else. That is, this issue directly affects national security, if only because we do not receive enough components and cannot produce the amount of equipment that should protect us from the Russians. To protect not only us, but also Europe," she said.

Read also: Situation on Ukraine's border unacceptable: European Commissioner warns Poland of "consequences"

As Ukrinform reported, on November 6, Polish carriers began a blockade of truck traffic near the three largest checkpoints on the border with Ukraine: Korczowa-Krakivets, Hrebenne-Rava-Ruska, and Dorohusk-Yahodyn. Among the main demands to the Ukrainian government is the return of the practice of permits for Ukrainian carriers, which was abolished by the agreement with the European Union until June 30, 2024. The protesters want the agreement to be terminated and the permit regime to be restored from January 1.

On November 23, Polish farmers joined the protest of local carriers and began blocking the movement of trucks at the Medyka-Shehyni checkpoint near Przemysl to express their demands.

Read also: European Commission sees no negative impact of Ukrainian agri-exports on EU markets

According to the State Border Guard Service, as of the morning of December 1, about 2,100 trucks were queuing to enter Ukraine at the Ukrainian-Polish border.

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