Sanctions Increased Russia's Cargo Transit Costs - Intelligence

Russia has increased its cargo transit costs through Ukraine. The Foreign Intelligence Service of Ukraine reported that after the imposition of sanctions against the Russian Federation in 2022, the country's transit expenses have significantly increased.

This particularly concerns routes to the Kaliningrad region, which is a separated territory of Russia. Previously, most cargo to Kaliningrad passed through Lithuania, but due to imposed quotas and restrictions, this route has become less accessible.

The load has shifted to maritime routes: if in 2019 cabotage amounted to 0.4 million tons, in 2024, only the company 'Oboronlogistika' transported over 2 million tons. However, the ferry infrastructure was overloaded - queues, shortage of places, and a reduction in the fleet complicate deliveries.

According to intelligence, small businesses have suffered the most, as larger operators reserve spots in advance due to administrative resources, pushing small carriers out of the market.

Sanctions disrupt logistics and deepen socio-economic imbalances in the region, exposing the system to vulnerabilities.

The message about the increased costs for Russia's cargo transit through Ukraine following sanctions imposed in 2022 indicates the challenges the country faces due to disrupted logistics and restrictions on cargo transport to certain regions. This also affects businesses and the transportation market, increasing imbalances and the vulnerability of the system.