Ukraine Crisis

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The recent crisis in Ukraine that has its beginning with the protests that formed when the Ukrainian government took a more Russian friendly stance over increasing relations with the European Union has taken a turn that has returned Crimea to Russian control. Although the events have been primarily political in nature of the effects have had an effect on trade, specifically trade and transport. Exporters to the Ukraine are seeing large drops in orders and credit lines have also taken hits because of the turmoil facing the country.

Unfortunately for smaller operators, the multinational logistics operators that have established themselves in the country can benefit from the shift towards more safe and secure options by shippers. For those exporting to the Ukraine, there can actually be some misconceptions about the benefits of or lack of benefits that are found with smaller operators. Yes, the larger logistics operators are typically more financially secure, however those that are smaller may be less financially secure but they still have their own benefits. In country and local offices have the potential to provide savings in exchange for financial stability. This is because it is more common for a smaller operator to have the local connections that are necessary for expediting the shipments of goods they handle through the entire process once goods reach the Ukrainian border.

Gazprom, the central energy provider in the region has been seen to have held its stance on fuel prices for the time being as the situation in Crimea plays on. However, with the recent annexation of Crimea to very little political challenges and sanctions that were placed on only a select individuals and Russian businesses, there is likely to be no drastic change in the near future as the situation in the area faces a cool down.

The events in Ukraine, and especially Crimea are very significant and are bound to have aftershocks that are felt throughout the daily lives of individuals and businesses, especially when those businesses are involved with international trade. Eventually the situation is bound to stabilize and we will likely to see a return to a business environment resembling the status quo although there will likely be some long-term repercussions due to the annexation of Crimea from the Ukraine as its control is, depending on your viewpoint, undertaken or returned to Russia.

We wish the best of luck to our members operating out of the Ukraine or doing business across Ukrainian borders.

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