Abrikosov vortex contains magnetic field and circulating currents that decay at a short range λ ∼ 100 nm. However, the vortex can induce a long range Josephson phase shift at distances r ∼ µm λ. The mechanism of this puzzling phenomenon is not clearly understood. Here we present a systematic study of vortex-induced phase shift in planar Josephson junctions. We make two key observations: (i) The cutoff effect: although vortexinduce phase shift is a long-range phenomenon, it is terminated by the junction and does not persists beyond it. (ii) A crossover from linear to superlinear dependence of the phase shift on the vortex polar angle occurs upon approaching of the vortex to the junction. The crossover occurs at a distance comparable with the penetration depth. This, together with theoretical and numerical analysis of the problem, allows unambiguous identification of two distinct and independent mechanisms. The short range mechanism is due to circulating vortex currents inside superconducting electrodes without involvement of magnetic field. The long range mechanism is due to stray magnetic fields outside electrodes without circulating vortex currents. We argue that understanding of controlling parameters of vortex-induced Josephson phase shift can be used for development of compact and fast electronic devices with low dissipation power.