KOMMERSANT | How Russia’s haulage industry has been hit by sanctions

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Western sanctions against Russia have hit hauliers hard, with the cost of transports skyrocketing after Russian and Belarusian trucks were banned  from Europe,  Kommersant reported.

The EU announced earlier this month it would ban Russian and Belarusian trucks from working in the bloc in response to the war in Ukraine.

Rush

That set off a rush to the borders for thousands of drivers and on April 16, the line of Russian and Belarusian trucks hoping to leave the EU before sanctions took effect stretched for 80 kilometers at the border of Poland and Belarus, at a border crossing in the Polish town of Koroszczyn, Quartz reported.

Exemptions have been granted for pharmaceutical, medical, agricultural and food products, including wheat, and humanitarian transport.

<<The restrictions imposed by the sanctions are beginning to be felt in the domestic transport market in Russia, ” Alexander Fedorov, head of the department of domestic services, on Russia, at Stalogistic was quoted by Kommersant as saying.

The latest round changed  the situation dramatically and transportation costs have risen sharply, said Yevgeny Diatlov.

Delivery

„Delivery time, costs during the trip and the complexity of the logistics chain have increased significantly. Contractors are forced to develop new schemes for the delivery of goods. We are seeing an increase in tariffs this week by 200-300%,” said Mr Diatlov, the head of the international transport purchasing department at FM Logistic in Russia.

Russian hauliers have also hiked their tariffs amid an increased demand for goods and raw materials from Russia.

„Due to the introduction of the fifth package of sanctions, the number of vehicles decreased, which caused a sharp increase in tariffs and general confusion,” he said.

Sanctions

Earlier this year,  truck from Europe to Russia cost 6,000 euros and “the rates seemed really low,” says Iulia Șlenskaia, general manager at KBT.

But now, amid the sanctions and congestion on the border with Belarus, and even fears of taking orders for Russia, the cost has soared.

” Today, a truck from Europe to Russia costs from 8,000 to 19,000 euros, she says, „the upper limit being determined only by the greed of the carrier and the willingness of the customer to pay.” >>

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