23/ 09/ 2014

Following the lobbying efforts of the Logistics Committee of the European Business Association, the State Service of Ukraine on Regulatory Policy and Entrepreneurship Development rejected the Draft Order of the Ministry of Infrastructure of Ukraine “On Adoption of the Amendments to the License Terms of Providing Services of Transportation of the Passengers, Hazardous Commodities and Luggage by River and Marine Transport”.

Background: The Draft Order initiated by the State Inspection of Ukraine on Security in Maritime and River Transport was published on the official website of the Ministry on 1 July 2014.

This Draft Order suggests supplementing the License Terms with an additional subtype of the license services, namely: “cargo handling operations”. Such an amendment does not comply with Article 9 of the Law of Ukraine “On Licensing of the Economic Activities” No1775-III dated 1 June 2000, where an exhaustive list of economic activities, which are subject to licensing, were established.

According to EBA Committee members, the implementation of these changes might create additional bureaucratic barriers for business development; and may increase the risk of corruption through the necessity to re-issue already issued licenses etc. Moreover the business community considers that the very updating of the standards, security norms and real control of their execution may enhance security in this corresponding sector.

We are glad to inform you that on 4 September 2014 the State Service did not confirm the Draft Order (Resolution No648).

The EBA would like to express our gratitude to the State Service and members of the Committee for their effective and constructive cooperation. At the same time we will continue our work oriented at creating a positive business climate in Ukraine.

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