Companies
Companies
20.3.2022
10:03

How the war in Ukraine is affecting companies

These are terrible images that are reaching us from Ukraine these days. They leave us speechless — and raise many questions.

These are terrible images that are reaching us from Ukraine these days. They leave us speechless — and raise many questions at the same time.

What does the war mean for German companies? How will sanctions from both sides affect trade? Are Ukrainian refugees allowed to work in Germany? We would like to answer some of these questions — if they are of a legal nature — for you.

Would you like to welcome refugees into your home or support Ukrainian relatives with administrative procedures? Here Find the most common questions and answers for private individuals about Ukraine.

Can I employ Ukrainian refugees in my company?

The short answer is yes, after certain requirements have been met.

The Federal Ministry of the Interior exempts refugees from having a residence permit until May 23. They must therefore register with the local immigration authority by then at the latest in order to obtain a longer-term residence permit. People from Ukraine will then receive a “residence permit for temporary protection.”

With this residence permit, refugees can theoretically work. However, the local immigration authority must allow this in individual cases.

Important for you: In theory, refugees can also apply for asylum in Germany. In fact, this creates some disadvantages for them (among other things, they are not allowed to work for three months after applying for asylum; in addition, refugees with an asylum application must live in a reception center and are not allowed to freely choose their place of residence). So if you already have personal contact with Ukrainians who would like to employ you in your company: advise them on a “residence permit for temporary protection”! This is initially valid for one year and can be extended for up to three years.

Starting in Germany will be no problem for many professions. However, there are some professional groups whose qualifications and qualifications must first be recognized — such as doctors, nurses and engineers. The Federal Ministry of Economics and Climate Protection iAre employers currently targetedhow professional qualifications are recognized. Craftsmen only have to have their degrees recognized if they want to become self-employed. They may therefore also be hired without a journeyman's or master craftsman's certificate.

My company has concluded (framework) contracts with Russian trade partners. Are they now ineffective?

As recently as last year, the Russian Federation was the largest trading partner of German seaports with 24.1 million tons of trade goods. And other industries — aviation, technology or chemicals — are also directly affected by EU sanctions against Russia.

Since there is no total embargo against Russia, trade relations with Russian business partners are still permitted in principle. The financial and economic sanctions relate primarily to goods that can be used directly or indirectly (dual-use goods) for warfare, as well as trade relations with certain Russian businessmen and members of the Russian Federation Council. A detailed list of sanctions and listed persons can be found on the side of the European Council.

If you have concluded (framework) contracts with Russian companies or residents in Russia, you must check whether

  • The goods sold or purchased by you are affected by European or Russian sanctions
  • Whether the old contract clauses or settlement deadlines listed in the sanctions lists apply to your trade relationships. In individual cases, these make it possible for contracts concluded before the new sanctions come into force to be fulfilled.

Can I pass on the increased transport costs directly to my retail partners or customers?

The indirect effects of the war in Ukraine are particularly noticeable for transport and logistics companies: The rise in fuel prices is pushing some companies to the brink of their liquidity.

Unfortunately, you cannot immediately apportionate the increased expenditure. But there are creative solutions that some transport service providers are already using to compensate for high fuel prices:

  • Shortened diesel floater period: The variable fuel surcharge, known as a “diesel floater”, can be shown as a separate item on freight forwarding invoices. The diesel floater is usually adjusted within two to three months. In order not to have to pre-finance this long period now, you can shorten the period accordingly in your contracts.
  • Diesel surcharge: An alternative to diesel floaters offers an immediately stated surcharge — for example, “20 euros per trip.” In contrast to diesel floaters, however, this measure is not very transparent. However, it can be a temporary solution until the diesel floater compensates for your additional costs.

lookout

You may not refuse contractually agreed services (such as the transportation of a product) due to increased fuel prices. Your contractual partner's claim to the service is only excluded if transportation is in fact impossible for you. However, as long as there are still roads, trucks and gas stations, this situation will not be achieved. At the gas station, it's time to grind your teeth and get through.

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