General

China has always been Ukraine's largest trade partner, and China Ukraine trade will reach a new high in 2021. The Russian Ukrainian war led to a "cold wave" in China Uzbekistan trade.

As China's largest small commodity market, Yiwu also fell into a low ebb in the face of the Ukrainian market, and international trade exports were basically at a standstill.

The Central Bank of Ukraine said that since the outbreak of the Russian Ukrainian conflict, the Ukrainian currency hryvna exchange rate has not fluctuated significantly. As of the morning of February 28, the exchange rate was 29.25 hryvnas to US $1, no significant change compared with that on February 27.

Domestic and foreign trade owners and international logistics enterprises are suggested to make the following preparations

For the goods sent to Ukraine, the performance of the signed contract needs to be evaluated. It is recommended that both the buyer and the seller fully evaluate the current development of the war. For goods exported from China that have not been shipped for the time being, it is recommended that the exporter cancel the shipping plan after consultation with the customer and reach an agreement with the freight forwarder and carrier; For the goods that have been shipped, it is necessary to contact the freight forwarder and shipping company in a timely manner, handle the return or transportation to the transit port in a timely manner, and obtain the consent of the customer.

For transactions with Russian customers, international trade import and export enterprises need to focus on assessing the legal risk of payment for goods. If the contract adopts any of the methods of USD, EUR, GBP and JPY, especially USD settlement, the import and export enterprises of international trade need to renegotiate with the counterparty. For export enterprises, they shall negotiate with customers to change the currency of payment, and take the receipt of the buyer's payment as the condition for payment completion; For import enterprises in international trade, they shall negotiate with customers to change the payment currency or the payee of the payment for goods, specify the risk of freezing the payment for goods, and the seller shall select the appropriate currency and payee.

For the goods imported from Ukraine, the escalation of the situation may lead to fluctuations in the market prices of some commodity goods. It is recommended to fully assess the extent of the impact, actively seek for substitute goods, and communicate with downstream enterprises in a timely manner to reach new intentions, make a good layout in advance to prevent the expansion of losses, so as to cope with the shortage of goods and price fluctuations.

Focus on the evaluation of contracts signed with Russian customers but not yet fulfilled. It is suggested that such contracts should be continued according to the subsequent development of the Russian Ukrainian war. Under certain conditions, transactions can be conducted under compliance conditions by changing the transaction subject.

Encourage cross-border RMB settlement. In December 2021, the proportion of RMB settlement exceeded that of Japanese yen, accounting for 2.70% of the total amount of international monetary settlement. The Russia Ukraine war is bound to cause the United States to impose monetary payment sanctions on Russia. It is recommended that commercial transaction entities adopt cross-border RMB settlement.

The diversion of ship owners around the port and the rise of crude oil prices will certainly increase the pressure on nearby ports, shipping costs and shipping risks, which will aggravate the instability of trade. It is suggested that the cargo owners passing through Ukraine should keep abreast of the latest local situation, control the cargo right, adjust the transportation route and shipping rhythm in time, tighten the settlement method, and avoid the expansion of losses.

It is suggested that international freight forwarding enterprises should pay attention to the goods transported to Ukraine in a timely manner. For the goods that have been shipped, it is necessary to contact the owner of the goods in time, track the shipping status of the goods, know whether the carrier ship is sailing to Ukraine according to the plan, and know whether the consignee can pick up the goods in time; Assist the owner of the goods to transport the goods to the transit port in time, or handle the timely return of the goods; Pay close attention to the use of containers, and timely assist the owner to return the containers as soon as possible to avoid excessive long-term use of containers.

It is suggested that the owner who has purchased insurance should actively communicate with the insurance company, and in case of failure to receive or pay, report the loss to the insurance company and apply for compensation in time to reduce the loss. It is suggested that the consignors who have not purchased insurance should actively understand the policies of the insurance company and purchase insurance to reduce the possible risks and losses in the future.