The Russian freight industry was on the verge of bankruptcy due to the war with Ukraine

The Russian trucking industry was threatened with bankruptcy due to the war with Ukraine and the sanctions that followed. Restrictions prohibit Russian truckers from transporting goods to Europe, which is why an excess of trucks has already been organized on the domestic Russian market, and transport links with the EU have been virtually monopolized by foreign transport companies. This is stated in the draft appeal of the Association of International Road Carriers to Russian President Vladimir Putin, RBC reports .

The association calculated that since the introduction of the ban on Russian carriers, domestic companies have already overpaid foreign truckers for transportation services by 68 billion rubles, and if the authorities do not take emergency measures, then by the end of the year this amount will increase to 333 billion rubles. The problem is that Russian carriers are denied entry to Europe, but foreign carriers are not allowed to enter Russia. This situation has turned European companies into monopolists in the transportation market on the Russia-EU route and led to a multiple increase in the cost of services.

If before the war the average cost of transportation was estimated at €3.2 thousand, now it is €12 thousand. At the same time, the restrictions led to an excess of transport on the domestic Russian market, due to which domestic transportation, on the contrary, fell sharply in price - by about 13.2%. The association insists that the current market conditions create conditions for the bankruptcy of companies that are already operating on the verge of profitability, and calls on the government and the president to take urgent action.

To date, the authorities have approved a package of financial support for the industry, which includes: 18.6 billion rubles in compensation to companies to save jobs, 3.5 billion rubles in subsidies to leasing companies, 2.4 billion rubles in compensation for trucks arrested in Ukraine and cargo. However, the introduction of retaliatory measures that could balance the market is still being considered.

Difficulties with the introduction of a mirror ban were previously justified by large business representatives: they feared that due to Russian restrictions, Europe would stop supplying equipment that is critical for domestic business, which would only cause more damage to the economy. The total volume of goods delivered by road in 2021 was estimated at 22.8 million tons, of which 55.4% were delivered by Russian truckers.

American Daily Newspaper

Learn More →