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Light at the end of the tunnel: authorities have figured out how to support Russian carriers

  • October 18, 2022
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When the military special operation started and the Ukrainian conflict started a new round, Russian transport companies were banned from carrying out road transport across the territory of

When the military special operation started and the Ukrainian conflict started a new round, Russian transport companies were banned from carrying out road transport across the territory of the European Union. And now, six months later, Moscow has repaid Brussels with the same currency: from now on, companies from ‘unfriendly’ countries can no longer work with us. What will change and, most importantly, will it somehow help domestic logistics, the AvtoVzglyad portal found.

Russian transport companies came under the ban in early April, when the EU ‘rolled out’ the fifth package of sanctions. And although this seriously complicated the lives of domestic carriers, the authorities were in no hurry to introduce mirror measures. In particular, the Ministry of Transport spoke out against the “talion principle” – saying closing borders to EU logistics providers will undermine key deliveries. Important – also for our country.

But it seems officials have changed their minds and six months later Russian Prime Minister Mikhail Mishustin signed a decree banning international road freight transport for companies from the EU countries, Britain, Norway and Ukraine. It went into effect on October 10, but carriers from “unfriendly” countries were given another week to “evacuate” their cars from Russia.

But what are the real chances that this measure will work and support the industry?

First of all, it must be said that the ban applies to bilateral and transit shipments throughout Russia, including those with a final destination in third countries. At the same time, it does not apply to postal shipments, the importation of goods into the Kaliningrad region, the transfer of foreign trucks to domestic or Belarusian trucks. True, it is only allowed in special customs control zones.

Since the EU ban allowed the transport of special category goods, this is also provided for by the Mishustin decision. More specifically, we are talking about certain types of food, medicines, fertilizers, paper, plastic and products thereof, energy carriers and other important goods. Also remains open and “road communications for humanitarian purposes,” the Federal Customs Service noted.

But even in the face of permissiveness, this ban is sure to get Europeans in trouble. Nevertheless, they have so far been working freely in the Russian Federation, using border crossings in Finland, Estonia and Lithuania. And at first they also traveled through Belarus – in many cases it was more profitable and faster, Oksana Feoktistova, director of the PEK business unit: GLOBAL, told the AvtoVzglyad portal. But not for long: the neighbors closed the borders to carriers from the EU as early as April.

“Since the local government does not allow European carriers to enter its territory, they can only deliver through the Republic of Belarus by attaching a trailer to the cargo or transferring goods from their vehicles to Russian or Belarusian ones,” says Andrei. Pobezhimov, head of the international logistics service, explained to the AvtoVzglyad portal and CDEC’s foreign economic activity.

Now transport companies from ‘unfriendly’ countries are banned from entering Russia. This does not bode well for them – they will have to build new, much less convenient routes and significantly reduce the volume of delivery. This is how our carriers got out, but unfortunately not everyone survived this crisis. According to some reports, more than 3,000 car companies of the Russian Federation were forced to shut down their activities as a result of sanctions.

For the rest, the news about “mirror” sanctions is certainly good – according to representatives of transport companies, this measure will significantly support the industry. How? It will give them more work: someone has to deliver freight from the European borders to Russian end customers. Will this increase lead times? Probably, but not much. Because of the sanctions, there was a surplus of trucks, which are now finally going to work.

Photo: www.ft.com
Photo: www.freightwaves.com

Russian transport companies came under the ban in early April, when the EU ‘rolled out’ the fifth package of sanctions. And although this seriously complicated the lives of domestic carriers, the authorities were in no hurry to introduce mirror measures. In particular, the Ministry of Transport spoke out against the “talion principle” – saying closing borders to EU logistics providers will undermine key deliveries. Important – also for our country.

But it seems officials have changed their minds and six months later Russian Prime Minister Mikhail Mishustin signed a decree banning international road freight transport for companies from the EU countries, Britain, Norway and Ukraine. It went into effect on October 10, but carriers from “unfriendly” countries were given another week to “evacuate” their cars from Russia.

But what are the real chances that this measure will work and support the industry?

First of all, it must be said that the ban applies to bilateral and transit shipments throughout Russia, including those with a final destination in third countries. At the same time, it does not apply to postal shipments, the importation of goods into the Kaliningrad region, the transfer of foreign trucks to domestic or Belarusian trucks. True, it is only allowed in special customs control zones.

Since the EU ban allowed the transport of special category goods, this is also provided for by the Mishustin decision. More specifically, we are talking about certain types of food, medicines, fertilizers, paper, plastic and products thereof, energy carriers and other important goods. Also remains open and “road communications for humanitarian purposes,” the Federal Customs Service noted.

But even in the face of permissiveness, this ban is sure to get Europeans in trouble. Still, until now they worked freely in the Russian Federation, using border crossings in Finland, Estonia and Lithuania. And at first they also traveled through Belarus – in many cases it was more profitable and faster, Oksana Feoktistova, director of the PEK business unit: GLOBAL, told the AvtoVzglyad portal. But not for long: the neighbors closed the borders to carriers from the EU as early as April.

“Since the local government does not allow European carriers to enter its territory, they can only deliver through the Republic of Belarus by attaching a trailer to the cargo or transferring goods from their vehicles to Russian or Belarusian ones,” says Andrei. Pobezhimov, head of the international logistics service, explained to the AvtoVzglyad portal and SDEK’s foreign economic activity.

Now transport companies from ‘unfriendly’ countries are banned from entering Russia. This does not bode well for them – they will have to build new, much less convenient routes and significantly reduce the volume of delivery. This is how our carriers got out, but unfortunately not everyone survived this crisis. According to some reports, more than 3,000 car companies of the Russian Federation were forced to shut down their activities as a result of sanctions.

For the rest, the news about “mirror” sanctions is certainly good – according to representatives of transport companies, this measure will significantly support the industry. How? It will give them more work: someone has to deliver freight from the European borders to Russian end customers. Will this increase lead times? Probably, but not much. Because of the sanctions, there was a surplus of trucks, which are now finally going to work.

Source: Avto Vzglyad

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