The price rise in Ukraine in recent months has been triggered by high energy prices, a well-known economist and expert in Ukraine, Oleksandr Bondarenko, told the Eastern European Bureau of Report.
"Of course, the price of food and goods in Ukraine has been seriously affected by Russia's massive strikes against electricity-generating sources and electricity distribution systems. Therefore, Ukraine is now forced to import electricity from the European Union (EU). That is why electricity has become more expensive and has affected other areas as well. Thus, when electricity is imported from the European Union, it costs about 18–19 euro cents per kilowatt-hour. But before the problem in Ukraine, its price was 11–12 euro cents per kilowatt-hour. Currently, enterprises in Ukraine pay 16–17 euro cents per kilowatt-hour for electricity. They then use this electricity in the manufacturing of various goods. Therefore, this factor affected the cost of production and, accordingly, the final price of the goods," Bondarenko noted.
The expert also pointed out that the second factor is related to the increase in logistics and transportation costs: "During the last 1.5–2 years, both land and sea freight transportation have become more expensive. For example, transporting 20 tons of cargo from Klaipeda to Kyiv cost 2,600 euros 1–1.5 years ago. However, currently, this indicator has reached 5,000 euros due to the problems on the border with Poland and the increase in the stopping time of drivers. In other words, the prices of companies and logistics costs have almost doubled. Accordingly, the price of imported goods doubled. The prices of the consumer basket of ordinary goods have increased by about 15–18 percent.”