IMPACT OF COVID-19 AND UKRAINE-RUSSIA WAR ON THE INTERNATIONAL TRADE AND LOGISTICS

Abstract

The COVID-19 pandemic has caused a series of disruptions in production and transportation. After the reduction in mortality from COVID-19, trade, and tourism began to accelerate sharply, which resulted in increased demand, primarily for air transport. And then, there came a special intervention of Russia in Ukraine. During the ongoing intervention, the transport infrastructure in Ukraine was damaged significantly. The EU actively joined the war and adopted a series of sanctions to undermine Russian economic and financial ability to wage war. That led to the closure of the EU airspace for Russian aircraft, the closure of the EU ports to Russian ships, the banning of Russian transport operators, and bans on the export of goods and technology to the aviation, maritime, and space sectors. Pipeline transport is also under attack. The United States and several countries introduced similar bans. The sanctions caused a backlash and also affected transport in the EU, leading to difficulties in traffic, gas, and oil supply. Western airlines also cannot fly to or through Russia. Bottlenecks emerged in supply chains and the need to bypass traditional routes. That increased travel time and costs significantly. Transport companies faced restrictions from both the Western countries and the Russian Federation. In connection with the 'special' operations in Ukraine and the Western sanctions, the transport situation in the Russian Federation has also deteriorated significantly. This paper will not deal in detail with the causes of crises but their effects on transport.