The Ukrainian Black Sea city is an important seaport and also the location of HHLA. The Hamburg port operator has suspended all activities on site for the time being.
(Photo: AP)
Dusseldorf, Berlin, Munich Due to the military attacks by Russia on Ukraine, the first German companies stop their local production. The Lower Franconian plaster manufacturer Knauf has decided to close its plant with around 590 employees “as a precautionary measure until further notice,” said Jörg Schanow, managing director for human resources and law, the Handelsblatt. All employees on site are doing well.
The large family business operates a plant in the Donbass region in the east of the country, 20 kilometers from the occupied separatist areas, which is still under Ukrainian control. Ukrainian troops are threatening to lose control of other parts of the region after the Russian military moves into those areas. NATO Secretary General Jens Stoltenberg officially spoke of a war on Thursday afternoon.
>>> More information: Russia starts war in Ukraine – the current developments
According to the German-Ukrainian Chamber of Industry and Commerce, around 2,000 companies with German participation are active in the Ukraine. Most companies are based in the west of the country – 700 kilometers from the main line of conflict. But airstrikes and Russian troop movements on both sides of the Ukrainian state border are now being reported from different parts of the country.
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The Hamburg port and logistics group HHLA has therefore stopped operating its large container terminal in the Black Sea port of Odessa. CEO Angela Titzrath was concerned on Thursday afternoon. The port operator, which is majority-owned by the Hanseatic City of Hamburg, has been responsible for the largest Ukrainian container terminal in Odessa on the Black Sea since 2001. 170 million dollars have been invested there since then.
“We cleared the last two ships by nine o’clock this morning and left the port at the request of the Ukrainian authorities,” reported Titzrath. 480 employees were sent home with the advance payment of a month’s wages, but eight security guards are still active there for security. It is still unclear whether own facilities have already been hit by a Russian rocket attack, which news agencies from the Odessa region reported at noon.
The port is particularly important for supplying the population with consumer goods. In addition, it mainly serves as an export port for agricultural products. It is not known when and if there will be a reopening.
Since the annexation of Crimea in 2014, there have been almost no connections from Odessa with Russia, reported HHLA foreign head Philip Sweens. HHLA also anticipates further restrictions for shipping traffic between the Port of Hamburg and the Russian ports on the Baltic Sea such as Ust-Luga and St. Petersburg.
Logisticians stop transports
Medium-sized German automotive suppliers are also well represented in the Ukraine. These include Leoni, Kromberg & Schubert and Prettl. The wholesale group Metro is anchored in the country with 26 stores and employs 3,400 local people. According to Google, around half of the Metro stores in Ukraine are currently closed. The group has made preparations for the employees, according to a spokesman, without giving any further details.
Oliver Hermes, Chairman of the Committee on Eastern European Economic Relations, said: “This is a black day for Europe. There will only be losers in this war.” For 70 years, the association has been trying to build economic relations with Eastern Europe. “The successes of this work are being massively questioned today,” says Hermes.
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German logistics companies have meanwhile stopped their transports from Ukraine. The companies would order employees back, said Frank Huster, general manager of the Federal Association of Forwarding and Logistics (DSLV). “In addition to truck traffic, rail freight traffic is also affected.” The association recommends its members not to plan any movements in and out of the affected areas.
The situation is likely to exacerbate delivery bottlenecks in Germany. Almost half of the truck drivers deployed here come from Eastern Europe, many of them from Ukraine, said Thomas Hansche, spokesman for the Federal Association of Logistics and Transport. Toll statistics show that a third of all trucks on German roads are registered in Eastern European countries. “Now in the event of war, these drivers will drive home to support their families,” says Hansche.
In addition, rail freight traffic came to a standstill due to the outbreak of war. The rail transport started by HHLA in Ukraine a good year ago is currently on hold, reported HHLA’s foreign boss Sweens. And according to HHLA, no transport is currently taking place on the so-called Iron Silk Road, which connects China with the economic centers in Europe.
German top managers are dismayed
Top German managers reacted with dismay. Mercedes boss Ola Källenius said: “Our thoughts are with the people of Ukraine. Business is secondary.” The carmaker sold 43,000 vehicles in Russia and 3,000 in Ukraine last year. The brand has been producing the E-Class in a factory near the Russian capital Moscow since 2019.
Telekom boss Timotheus Höttges was “horrified” when the annual figures were presented. Other events, such as the business figures, seem “downright banal” in view of the developments in Ukraine. Telekom employs more than 2,000 people in Russia at three locations.
This picture was taken in 2014 and shows an abandoned branch of the wholesale chain after the Donbass conflict escalated. Ukraine is an important foreign market for Metro.
(Photo: dpa)
Siemens Energy CEO Christian Bruch said at the group’s annual general meeting: “The attack on Ukraine represents a turning point in Europe.” His thoughts are with the people of Ukraine, especially the 47 employees and their families. Henkel CEO Carsten Knobel said on Wednesday when the annual figures were presented: “We are observing the situation with concern.” The Persil manufacturer operates four production sites in Ukraine and employs 600 people there.
The Ukraine is a comparatively small but attractive foreign trade partner for Germany. With a good seven billion euros from exports and imports, the Eastern European country only ranks 43rd according to the Federal Statistical Office. The country has affordable skilled workers and, with over 40 million inhabitants, offers a relevant sales market. Before the situation escalated, there were even more investment requests from German companies, according to the Chamber.
More: All current developments on the war in Ukraine in the Newsblog