16:48 15.01.2024

Associations ask to convene NSDC meeting consider problems with cargo transportation via Suez Canal

2 min read
Associations ask to convene NSDC meeting consider problems with cargo transportation via Suez Canal

Six associations appealed to President of Ukraine Volodymyr Zelenskyy with a request to consider at a meeting of the National Security and Defense Council (NSDC) of Ukraine the difficulties that Ukrainian companies have encountered during cargo transportation through the Suez Canal.

"This situation is especially important during the period of partial blocking of cargo transportation across the borders of our European partners," representatives of the public explained.

They recalled that the Yemeni Houthis have been attacking merchant ships in the Bab el-Mandeb Strait since the end of November out of solidarity with the Hamas group and with the support of Iran, which is currently actively cooperating in the military-technical sphere with the Russian Federation. This created serious problems for Ukrainian companies transporting goods through the Red Sea.

According to their information, the biggest problems arise for transporters of agricultural products, which may affect the increase in financial losses of their producers due to logistics problems.

"Every year, more than 40% of domestic exports of grain and food products flow through the Suez Canal to the countries of Africa, the Middle East and South-East Asia. Domestic prices for fuel and mineral fertilizers, which come in significant quantities from the countries of the Middle East, will also increase. Kazakhstan and Uzbekistan," the arguments are given in the appeal.

In conditions of temporary uncertainty in the timely provision of financial support to Ukraine by international partners, this may further reduce the sustainability of business in the fight against the enemy, business representatives are confident.

The appeal was signed by the Ukrainian Grain Association, UkrKharchProm, the Ukrainian Union of Industrialists and Entrepreneurs, the Federation of Employers of Ukraine, the International Chamber of Commerce and the Ukrainian Agrarian Confederation. They asked the head of state to consider this problem at a meeting of the National Security and Defense Council and give appropriate instructions to the ministries to develop the necessary proposals.

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