Impact of Russia-Ukraine Conflict on Shipping Sector

The supply chains have been hit all around the world and experts are of the opinion that the Indian economy will be negatively impacted due to such disruptions including the shipping sector.

Table of Contents

Russia Ukraine War- Relevance for UPSC Exam

GS Paper 2: International Relations- Effect of policies and politics of developed and developing countries on India’s interests.

Russia Ukraine War- Why in news

Russia Ukraine war began when Russian President Vladimir Putin announced the ‘military operations in Ukraine.
Russia Ukraine conflict has caused many strategic, political and economic consequences around the world.
Ukraine has severed diplomatic relations with Russia after Moscow launched an all-out invasion of Ukraine by land, air and sea.
The ongoing Russia Ukraine tensions have impacted global trade significantly.

शिपिंग क्षेत्र पर रूस-यूक्रेन संघर्ष का प्रभाव

Impact of Russia-Ukraine Conflict on Shipping Sector

The supply chains have been hit all around the world and experts are of the opinion that the Indian economy will be negatively impacted due to such disruptions including the shipping sector.
Due to the conflict between Russia and Ukraine, the Shipping companies are facing the following issues-
- Shipping activities in the northern black sea are closed
- Insurance cover has been withdrawn by the P&I.
- Containers bound for Ukraine and Russia are lying at different transshipment ports.
- Payment affected due to blockage of SWIFT in Russia.
- Congestion at neighbouring ports and transshipment ports.
- Trade to Russia and CIS countries have been affected and Shipping lines are not accepting goods for Russian ports.
The following steps have been taken to protect the Indian shipping companies from the adverse impact of this crisis-
- Meetings are taken at regular intervals with all stakeholders to review the situation.
- Shipping lines have been requested to explore alternative routes for Commonwealth of Independent States (CIS) / Russian cargo.
- EXIM Traders were informed that M/s ONE Shipping is carrying containers to Vladivostok.

UN Human Rights Council Resolution on Russia Ukraine War

Russia Ukraine War- India’s Diplomatic Dilemma

India’s statement at the UN lacked condemnation of the Russian attack on Ukraine. Five reasons for India’s diplomatic dilemma are discussed below-

Double Standards: The West views India’s statement as condoning Russia’s actions and applying double standards while it raises the issue of “territorial integrity and sovereignty” when it comes to China.
India’s strategic ties with Russia: India’s dependence on Russia for military supplies — 60 to 70 percent of India’s military hardware is of Russian origin.
- This is extremely crucial at a time when India has an ongoing border standoff with China.
India at UN Meeting: India said the escalation of tension along the border of Ukraine with the Russian Federation is a matter of deep concern.
- This is the closest New Delhi has gone so far to caution Putin’s Russia to not undertake risky behavior that may escalate.
- It is a euphemism and diplomatese for India telling Russia: don’t do it.
Safety of Indian Citizens: India’s worry remains its 20,000 Indian students and nationals, many of them who live close to the Ukraine-Russia border.
- Many of these students are enrolled in medical colleges of Ukraine.
- India has also emphasized that it was concerned about the safety and security of civilians.
Peaceful Negotiation through Diplomatic Channels: India has asked “all sides” to intensify diplomatic efforts to reach for an amicable solution at the earliest.
- This is again a time-tested line of India’s, where it doesn’t blame one side or the other for not being cooperative.
- West has blamed Russia for starting the tension and has put the ball in Putin’s court, whereas the Russian President has blamed NATO’s eastward expansion as a threat.