For a month now, the blockade of the Ukrainian-Polish border has been causing colossal losses to our country's budget. Polish carriers, along with their counterparts from Slovakia and Hungary, demand the cancellation of the European Union's 'transport visa' for Ukraine, further complicating the situation. Apostrophe delved into the true demands of the protesters and the expected response from the Ukrainian government.
From Protest to Raid
Representatives from Polish transportation companies have been continuing to imped border checkpoints on Polish-Ukrainian border. This action is hitting Ukrainian economy hard, considering that since the start of the full-scale Russian invasion, road transport has been the main link to the outside world. In November, Ukrainian exports witnessed a 40% decline, translating into a loss of 9.3 billion hryvnias in customs payments to the state budget.
So far, no solutions that could reliably restore border traffic have been identified. On the contrary, there are threats of solidarity actions with Poland from Slovakia and Hungary. Slovak carriers have already, on several occasions, blockaded the Uzhhorod-Vyšné Nemecké border crossing point.
The protests by Polish hauliers and their counterparts from neighboring EU countries are a consequence of the substantial increase in the intensity of Ukrainian truck traffic across the western border in recent years. This surge is attributed to such force majeure as war.
‘The closure of maritime routes following the Russian invasion has led to a significant surge in demand for road transportation’, Vice President of the Association of International Road Carriers of Ukraine Volodymyr Balin explained to Apostrophe. ‘Simultaneously, European carriers are not overly keen on venturing into Ukraine due to the risks associated with the ongoing war. Therefore, it is entirely natural that Ukrainian companies have substantially increased their transportation volumes’.
The seamless border crossings with the EU have greatly benefited from the ‘transport visa-free’ agreement signed in 2022. Initially set for a one-year term until June 30, 2023, it was later extended for an additional year. Thus, at least until June 30, 2024, Ukrainian freight trucks can conduct trips to EU countries without hindrance.
The ‘transport visa-free’ agreement stands as a significant manifestation of EU solidarity with Ukraine amid Russian aggression. It has notably eased the situation for a country surrounded on three sides by the front line and subjected to hostile blockades. However, transport operators from neighboring countries have perceived Ukrainian road transport as competition and a threat to their interests. Allegedly, Ukrainians offer lower transport rates compared to Polish or Slovak counterparts, resulting in them capturing a portion of the European transportation market.
‘In reality, Ukrainian carriers pose no competition to their European counterparts,’ Volodymyr Balin says. ‘The 'transport visa-free' agreement explicitly prohibits domestic companies from conducting transportation within the EU. We can only operate trips originating from Ukraine’.
In other words, a Ukrainian truck cannot accept orders for transporting cargo, say, from Berlin to Rome. The initial or final point of the route must be within Ukraine.
‘Of course, one cannot rule out the possibility that some may attempt to exploit the situation by transporting goods to EU countries and securing additional orders there’, Balin says. ‘These violations should be addressed by the relevant regulatory authorities in EU countries. However, there is currently no information indicating that such cases have been documented’.
Although there is no conditions for Ukrainian competition in the European market, carriers from neighboring countries still insist on scrapping the ‘transport visa-free’ regime for Ukraine and reverting to the old practice of issuing a limited number of permits for crossing EU borders. Relevant appeals from carriers in Poland, Slovakia, and Hungary have already been submitted to the European Commission.
However, the actions of carriers from neighboring countries seem more akin to not safeguarding their own interests, but rather attempting, taking advantage of Ukraine's challenging situation, to conduct a hostile takeover of the market share currently held by Ukrainian carriers.
‘If Ukraine agrees to the reinstatement of permits, they will issue plenty, but strictly bilateral ones. Transit permits — none. Consequently, our vehicles will only be able to travel to neighboring countries. They want our carriers to transport goods to hubs near the border, from where their vehicles will pick them up and deliver them to the final destination. Conversely, they will transport goods from across Europe to the hub, where Ukrainian vehicles will then pick them up. Both Polish and Slovak carriers openly state that such a system is their goal,’ says Volodymyr Balin.
If their plans come to fruition, Ukrainian vehicles will only be able to conduct short trips abroad to border hubs. Moreover, they will bear all the losses associated with delays and cargo processing at the border. Meanwhile, their European counterparts will enjoy unimpeded transport over long distances within the EU, capitalizing on the absence of internal barriers.
"Such a system would completely devastate the Ukrainian international transport sector," concludes Volodymyr Balin.
Turmoil in the Queue
Another demand from the Polish protesters concerns crossing the border by empty vehicles and the operation of an electronic queue.
‘The crux of the issue is the hindrance posed by empty trucks at border checkpoints,’ Volodymyr Balin explains. ‘Statistics show that 40-50% of vehicles are making the journey without cargo at the Yagodyn crossing. They slowdown the overall queue, causing disruption for both Polish and Ukrainian carriers.’
In an effort to streamline border crossings, Ukraine has implemented an electronic queue system for carriers. However, it is currently in experimental mode and has drawn complaints from users.
Like any new software product, the system initially had a range of shortcomings that allowed for certain manipulations with the queue. Therefore, over the course of a year, in collaboration with carriers, programmers have been refining the system to close loopholes and prevent abuse.
However, Polish carriers, currently impeding border traffic, interpret the challenges in implementing the electronic queue as an attempt by the Ukrainian side to discriminate against them and provide preferences to domestic companies.
‘In the operation of the queue, there are indeed shortcomings,’ Volodymyr Balin says. ‘However, we have not seen any evidence of discrimination against Polish drivers specifically. Yes, there have been instances where a vehicle was removed from the queue. But they are mainly associated with driver’s attempting to game the system. For example, a truck is pre-registered to return to Europe empty even before entering Ukraine, and then the driver finds cargo for the return trip. The system then detects the customs declaration and removes the vehicle from the queue of empty trucks. It needs to be re-registered as loaded, causing delays. However, the system would treat a Ukrainian vehicle in the same way under the same circumstances.’
One of the solutions that could alleviate the issue of empty transport is to organize its exit at specific border crossings where it will not disrupt the movement of loaded vehicles. The first significant step in this direction has already been taken. The Ministries of Infrastructure of Ukraine and Poland have agreed to facilitate the passage of empty trucks outside the electronic queue through the ‘Uhriniv- Dołhobyczów’ border crossing, which previously operated exclusively for passenger vehicles and buses.
‘I believe this is a step not only towards appeasing the Polish strikers but also benefiting Ukrainian carriers,’ Volodymyr Balin says. "I hope that fulfilling this demand encourages the strikers to at least abandon the language of ultimatums, lift the blockade, and come to the negotiating table’.
European Commission Supports Us
Meanwhile, the governments of Ukraine and Poland are striving to find solutions that would take into account the interests of all parties involved.
‘Jointly with the European Commission and the Polish government, we have devised a series of measures that would effectively address the concerns of the protesters and halt the demonstration,’ Deputy Minister of Community Development, Territories, and Infrastructure of Ukraine, Serhiy Derkach stated. ‘In fact, all these measures have been implemented.’
However, Polish carriers are unwilling to lift the blockade. Therefore, intergovernmental contacts will persist.
‘We need to be flexible in negotiations,’ Ukraine’s Minister of Infrastructure from 2016 to 2019, Volodymyr Omelyan commented to Apostrophe. ‘However, it's crucial to remember that compromises have limits. Ukraine should by no means agree to the cancellation of the 'transport visa-free' regime, which is an essential part of our country's European integration.’
In this matter, the European Commission aligns with Ukraine. According to Serhiy Derkach, in a recent meeting of the Council for Transport, Trade, and Energy in the European Commission, the majority of participants expressed support for retaining the "transport visa-free" arrangement for Ukraine.
‘Practically every country has voiced condemnation of the protests at the Ukrainian-Polish and Ukrainian-Slovak borders, which are causing economic harm to the entire EU and certainly not aiding Ukraine's war efforts,’ the Deputy Minister shared. ‘There have been loud statements from some EU countries and the European Commission about the urgent need for action by the Polish government.’
However, there is still much work ahead, as Polish protesters show no signs of readiness for compromise at this point.
‘The impression is that their demands are aimed not at reaching agreements but at blocking the transportation process itself,’ Volodymyr Omelyan says. ‘I believe there may be a Russian trace in this matter, and it's becoming increasingly evident.’
Therefore, Ukraine needs to pursue active diplomacy on three fronts simultaneously.
‘First and foremost, we need to engage with the governments of neighboring countries,’ Omelyan says. ‘Simultaneously, we must appeal to Brussels, as such actions undermine the unified EU policy. Additionally, we need to involve Washington, emphasizing that this is not a secondary issue. The viability of Ukraine and the regularity of shipments, including American military aid, depend on it.’
Another crucial factor that can help resolve the crisis at the border is Polish society. After all, the blockade adversely affects not only the Ukrainian economy but also has repercussions on Poland.
‘Many Polish enterprises are suffering due to supply delays,’ Volodymyr Balin says. ‘Some businesses have already been forced to halt operations, while others are incurring significant losses. The Polish budget is missing out on tax revenue. These issues are escalating, and we hope that this will increase the willingness of the Polish side to finally come to the negotiating table and constructively find a way out of this situation.’
