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The business draws attention to the possible renewal of the previous version of the Rules of Navigation and Pilotage on vessels contrary to the current legislation

23/ 10/ 2019
  The European Business Association is concerned about the possible renewal of the previous version of the Rules of Navigation and Pilotage of vessels contrary to applicable law. In particular, these are possible attempts to abolish the current version of the Rules of Navigation and Pilotage of ships in the northwestern part of the Black Sea, Buzka-Dnipro-Liman and Kherson sea channels. In recent years, the Associations experts have repeatedly appealed to the Government to revise the Rules to liberalize the rules of navigation without reducing the level of safety for the business community. The Association was heard, so on January 2, 2018, the Ministry of Infrastructure of Ukraine adopted Order № 2, which amended the Rules (currently in force). The approved changes were aimed at improving the investment climate in Mykolaiv and Kherson regions, as they provide for: increasing the maximum permissible dimensions of vessels that can pass through the channels; reduction of restrictions on round-the-clock and two-way traffic of vessels, virtually complete cancellation of mandatory towage requirements, which, in turn, reduces the cost of shipowners and charterers of seagoing vessels and makes Ukrainian goods exported from the Mykolaiv and Kherson seaports more competitive in world markets. However, Order № 2 has been canceled and the precautionary business is referring to a possible renewal of the Rules in the previous version, ie Order № 655. This situation has a negative impact on the companies that ship goods through the Mykolaiv and Kherson seaports, which have concluded contracts with foreign contractors, which stipulate the maximum size of the ships to be used to perform such contracts. Therefore, the unforeseen restriction of the size of seagoing ships by seaports will undoubtedly lead to the impossibility of executing contracts already concluded and to considerable losses on the part of business, both financial and reputational. At the same time, the business community draws attention to the fact that, according to the current legislation of Ukraine, the recognition as invalid, a normative act or its revocation does not renew the acts that were recognized as invalid. Also, the validity of a normative act is renewed by adopting a similar new act or a new act containing a special rule on the renewal of the previous act and defining a special procedure for such restoration of the relevant legal relations. Therefore, the current legislation and jurisprudence of Ukraine do not envisage in any case the notion of “restoration” by virtue of norms that have lost their validity in due course. The European Business Association focusing on the authorities attention to this situation and hopes that it will be resolved in the nearest future.

The European Business Association is concerned about the possible renewal of the previous version of the Rules of Navigation and Pilotage of vessels contrary to applicable law. In particular, these are possible attempts to abolish the current version of the Rules of Navigation and Pilotage of ships in the northwestern part of the Black Sea, Buzka-Dnipro-Liman and Kherson sea channels.

In recent years, the Association’s experts have repeatedly appealed to the Government to revise the Rules to liberalize the rules of navigation without reducing the level of safety for the business community. The Association was heard, so on January 2, 2018, the Ministry of Infrastructure of Ukraine adopted Order № 2, which amended the Rules (currently in force).

The approved changes were aimed at improving the investment climate in Mykolaiv and Kherson regions, as they provide for:

  • increasing the maximum permissible dimensions of vessels that can pass through the channels;
  • reduction of restrictions on round-the-clock and two-way traffic of vessels,
  • virtually complete cancellation of mandatory towage requirements,

which, in turn, reduces the cost of shipowners and charterers of seagoing vessels and makes Ukrainian goods exported from the Mykolaiv and Kherson seaports more competitive in world markets.

However, Order № 2 has been canceled and the precautionary business is referring to a possible renewal of the Rules in the previous version, ie Order № 655.

This situation has a negative impact on the companies that ship goods through the Mykolaiv and Kherson seaports, which have concluded contracts with foreign contractors, which stipulate the maximum size of the ships to be used to perform such contracts.

Therefore, the unforeseen restriction of the size of seagoing ships by seaports will undoubtedly lead to the impossibility of executing contracts already concluded and to considerable losses on the part of business, both financial and reputational.

At the same time, the business community draws attention to the fact that, according to the current legislation of Ukraine, the recognition as invalid, a normative act or its revocation does not renew the acts that were recognized as invalid. Also, the validity of a normative act is renewed by adopting a similar new act or a new act containing a special rule on the renewal of the previous act and defining a special procedure for such restoration of the relevant legal relations.

Therefore, the current legislation and jurisprudence of Ukraine do not envisage in any case the notion of “restoration” by virtue of norms that have lost their validity in due course.

The European Business Association focusing on the authorities’ attention to this situation and hopes that it will be resolved in the nearest future.

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