The Maritime Economist Magazine Spring 2015 | Page 35

THEMARITIME Economist

voice of young generation

During the past half year, the Ukrainian economy
destabilised with the local currency devaluating by
more than 35 %. The heavy industry activities in
the east of Ukraine (Donbas and Poltava Region) are
facing hard times. Moreover, the railway paths in the
Donbass region and other infrastructural facilities (e.g.
in Donetsk) are significantly disrupted by the war
making rebels. The Russian-Ukraine trade relations
are also affected by the recent turmoil. In a reaction to
the trade agreement between EU and Ukraine, Russia
has threatened to withdraw the duty-free treatment
that Ukraine currently benefits from as a member
of the Commonwealth of Independent States (CIS)
free trade agreement. If Russia would start to impose
customs duties, Ukraine’s exports could be heavily
affected (particularly base metals, grains, machinery,
equipment and food). Despite the crisis, Russia
remains a key trade partner of Ukraine: 24% of its
exports are related to Russia. A way out for Ukraine
would be to re-export EU products to Russia thereby
avoiding possible Russian duties.

Cargo impacts on Crimean ports

The Ukrainian port system is feeling the full impact
of the crisis. This section describes the expected
intra-Ukrainian cargo flows shifts, more precisely
which cargoes are more likely to be rerouted to
continental Ukrainian ports and which will stay bounded
to Crimea.
Ukrainian ports mainly focus on the handling of dry
bulk (agri-bulk, mining and metallurgic cargoes and
chemicals), general cargo (containers and heavy
industry goods) and liquid bulk. Dry cargo facilities
(including dry bulk and general cargoes, but excluding
grain and containers) in Ukrainian ports represent
133 mln tons or 51% of the total capacity of the
port system. The grain capacity represent another
15% of total ports’ capacities or about 38 mln tons
per year. The utilization rate of the cargo handling
facilities for dry bulk cargo in Ukrainian ports reached
92% in 2011. For grain facilities, it amounted to 47%.

Figure 2. Geographical location of Ukrainian ports and their handling capacities in
2011

ME Mag

Source: adapted from Marine Agency and Crewing company “Sif-Service” and Centre of transport
strategy cfts.org.ua (Kiev, Ukraine)

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