General Meeting with Volodymyr Omelyan, Minister of Infastructure of Ukraine

31/ 08/ 2017

The European Business Association held a meeting with Volodymyr Omelian, Minister of Infrastructure of Ukraine, and Raivis Veckagans, acting Head of the Administration of Sea Ports in Ukraine. The following urgent issues regarding rail transport, water connections and air transportation have been raised. Namely, the methodology for port fees calculation, the work plan of the Administration of Sea Ports in Ukraine for 2018; indexation of tariffs for rail freight, rolling stock renewal and long-term development strategy of Ukrzaliznytsia; development of air transportation. In particular, the Minister stressed that the competition for the election of the Chairman of the Board of PJSC Ukrzaliznytsya, as well as members of the supervisory board should be announced before October 1. Particular attention was paid to the issue of the possible tariffs raising, which is extremely painful for business, as today there is no confidence in the targeted use of funds and reduction of corruption. Business insists on conducting a well-reasoned dialogue on the subject before making such an important decision and hopes for the support and openness of the Ministry. At the same time, Mr. Omelyan noted that raising tariffs for rail transport could be the impetus for the development of river transport, the possibilities of which are not used currently. The Minister also emphasized the huge potential of the Ukrainian aviation market and expressed the conviction that regional airports could become the basis for low-cost airlines, which the Ministry of Infrastructure is counting on. Raivis Veckagans reported that the Administration of Sea Ports in Ukraine analyzes the cost of each port, so the fees will remain different for different ports. In addition, if the Ministry of Finance agrees to reduce deductions from 75% to 50%, it will reduce fees by 15%. We thank Mr. Omelyan and Mr. Veckagans for participating in the meeting and emphasize the importance of continuous dialogue with the business on particularly important logistical issues.

The European Business Association held a meeting with Volodymyr Omelian, Minister of Infrastructure of Ukraine, and Raivis Veckagans, acting Head of the Administration of Sea Ports in Ukraine.

The following urgent issues regarding rail transport, water connections and air transportation have been raised. Namely, the methodology for port fees calculation, the work plan of the Administration of Sea Ports in Ukraine for 2018; indexation of tariffs for rail freight, rolling stock renewal and long-term development strategy of Ukrzaliznytsia; development of air transportation.

In particular, the Minister stressed that the competition for the election of the Chairman of the Board of PJSC “Ukrzaliznytsya”, as well as members of the supervisory board should be announced before October 1. Particular attention was paid to the issue of the possible tariffs raising, which is extremely painful for business, as today there is no confidence in the targeted use of funds and reduction of corruption. Business insists on conducting a well-reasoned dialogue on the subject before making such an important decision and hopes for the support and openness of the Ministry.

At the same time, Mr. Omelyan noted that raising tariffs for rail transport could be the impetus for the development of river transport, the possibilities of which are not used currently. The Minister also emphasized the huge potential of the Ukrainian aviation market and expressed the conviction that regional airports could become the basis for low-cost airlines, which the Ministry of Infrastructure is counting on.

Raivis Veckagans reported that the Administration of Sea Ports in Ukraine analyzes the cost of each port, so the fees will remain different for different ports. In addition, if the Ministry of Finance agrees to reduce deductions from 75% to 50%, it will reduce fees by 15%.

We thank Mr. Omelyan and Mr. Veckagans for participating in the meeting and emphasize the importance of continuous dialogue with the business on particularly important logistical issues.