Ukraine Monitor
economic and social impacts
Views/information on resilience or disruption of supply chains due to the Russian invasion in Ukraine and various sanctions
11 May 2022
TCLF
The European TCLF sectors so far appear to be less impacted by the invasion of Ukraine compared to other manufacturing sectors (e.g. steel and aerospace). There are, however, concerns about the increase in energy prices and access to raw materials such as cotton, while some employers note the potential to hire some skilled Ukrainian workers to the European TCLF sectors which are suffering from a shortage of skilled workers. Trade unions insist that these workers benefit from the same pay and conditions as local workers with full respect to EU working rights.
Brussels, 9 May 2022 –Today, EURATEX has launched its EU-Ukraine Textile Initiative (EUTI), which aims at facilitating cooperation between European and Ukrainian textile and apparel companies. EUTI offers a single contact point for Ukrainian companies who seek support and cooperation with EU counterparts, and vice versa. That connection will be helpful to match supply and demand (e.g. there are many requests for supplies of fabrics), engage in public procurement, offer company-to-company support.
The service will be coordinated by EURATEX in close cooperation with UKRLEGPROM, Ukrainian Association of enterprises of textile & leather industry. Olena Garkusha, an experienced manager coming from the Ukrainian textile industry and now based in Brussels, will act as contact point (eu-ukraine@euratex.eu). Read more
Impact on the supply of equipment or raw materials from RU/UA/BY
Ukraine remains a small importer in terms of textiles to the EU (0.40% of the EU’s total apparel imports), with Russian importing even less (0.05% of European apparel imports).
Impact of rising energy/commodity prices
Soaring energy prices remain a concern for employers, with reports of many companies considering shutting down production due to the increased costs.
Social impacts of sanctions (e.g. companies’ liquidity, wage payments)
No issues reported.
Additional impacts worth mentioning
TCLF employers are looking into whether skilled Ukrainian workers could help plug the skills gap in their sectors with many refuges entering Bulgaria and Romania – countries which both have large TCLF sectors. However, trade unions report that many refugees prefer to move on to other countries and many do not want to stay and work, partly as they want to return to Ukraine as soon as possible. Trade unions have agreed to monitor the situation to ensure that no worker is mistreated or underpaid.
