You're reading: Ban on Ukrainian goods transit to Russia will triple logistics costs of confectionery makers

The transportation costs of Ukrainian confectionery enterprises for the delivery of goods to the Central Asia countries will almost triple due to the prohibition of transit through the territory of the Russian Federation, Ukrkondprom Head Oleksandr Baldiniuk has told Interfax-Ukraine.

According to him, in October 2015 the representatives of the confectionery industry met with the representatives of the Infrastructure Ministry, who announced the intention to negotiate with Georgia, Azerbaijan and other countries to create a transport corridor with a through fare.

“That means that the companies will not have to negotiate individually with each country, whose territory is crossed by the transport corridor. The tariff for transportation will be unified from Illichivsk to the opposite shore of the Caspian Sea in Kazakhstan. This will be the only train that is loaded in Ukraine and unloaded, let’s say, in Kazakhstan,” he added.

Now there is no information on the issue at the Ministry of Infrastructure, however, a meeting in the agency with the representatives of the industry is to be held on Jan. 12.

According to the Ukrkondprom head, the problem is the extremely high rates of Ukrferry domestic operator, a monopolist ferry from Ukraine to Georgia.