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Business welcomes the provision of state guarantees for the safety of shipping and rail transportation

01/ 04/ 2022
  Problems with logistics are the most challenging for businesses in Ukraine now, as shown by the recent EBA survey. The military aggression of the кussian аederation against Ukraine has caused serious problems, namely with the export of products, due to the blockade of Ukrainian seaports by russia. The state and business are currently forced to use alternative logistics routes to deliver goods, particularly by rail across the western border. Meanwhile, many private international carriers are ready to bring their rolling stock (freight cars), sea vessels, and inland waterway vessels to the territory of Ukraine, provided there is insurance or a guarantee from the state. Daria Sichkar. EBA Logistics Committee Manager. Earlier, the EBA asked the Government to provide such guarantees, as we have to fulfill our obligations as an exporting country. Logistics is critical in wartime for business, society, and the state. And the state guarantees should support the sector at such a critical time. Therefore, we welcome the decision of the Government adopted on March 30, which guarantees the safety of navigation in the waters of Ukrainian ports in the Danube region and transportation by rail. The Cabinet of Ministers instructed the Ministry of Infrastructure, the Ministry of Economy, and the Ministry of Finance to allocate funds from the State Budget Reserve Fund to compensate for damage caused by russias armed aggression against Ukraine, and in case insurers refuse to provide insurance coverage, to: charterers, operators, and/or owners of sea and inland waterway vessels under the flag of Ukraine and under the flags of foreign states – if such vessels operate in the waters of Ukrainian ports in the Danube region; owners and/or operators of rolling stock authorized for transportation on a railway with a track gauge of 1,435 mm – if such rolling stock is on the territory of Ukraine. So, we call on international carriers to cooperate and hope that the decision will revive logistics in Ukraine.

Problems with logistics are the most challenging for businesses in Ukraine now, as shown by the recent EBA survey. The military aggression of the кussian аederation against Ukraine has caused serious problems, namely with the export of products, due to the blockade of Ukrainian seaports by russia.

The state and business are currently forced to use alternative logistics routes to deliver goods, particularly by rail across the western border. Meanwhile, many private international carriers are ready to bring their rolling stock (freight cars), sea vessels, and inland waterway vessels to the territory of Ukraine, provided there is insurance or a guarantee from the state.

Daria Sichkar EBA Logistics Committee Manager
Earlier, the EBA asked the Government to provide such guarantees, as we have to fulfill our obligations as an exporting country. Logistics is critical in wartime for business, society, and the state. And the state guarantees should support the sector at such a critical time.

Therefore, we welcome the decision of the Government adopted on March 30, which guarantees the safety of navigation in the waters of Ukrainian ports in the Danube region and transportation by rail. The Cabinet of Ministers instructed the Ministry of Infrastructure, the Ministry of Economy, and the Ministry of Finance to allocate funds from the State Budget Reserve Fund to compensate for damage caused by russia’s armed aggression against Ukraine, and in case insurers refuse to provide insurance coverage, to:

  • charterers, operators, and/or owners of sea and inland waterway vessels under the flag of Ukraine and under the flags of foreign states – if such vessels operate in the waters of Ukrainian ports in the Danube region;
  • owners and/or operators of rolling stock authorized for transportation on a railway with a track gauge of 1,435 mm – if such rolling stock is on the territory of Ukraine.

So, we call on international carriers to cooperate and hope that the decision will revive logistics in Ukraine.

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