EBA supports the legislative initiative to streamline the procedure for transferring private underwater hydraulic structures to state ownership
The European Business Association, which unites the largest enterprises in Ukraine, believes that the adoption of Law No. 9573 will create preconditions for increasing the income of the Ukrainian Sea Ports Authority by transferring underwater hydraulic structures (canals, berth operating areas, etc.) to its ownership and, as a result, increasing the amount of dividends.
The large-scale port reform, which was launched in 2012 with the adoption of the Law of Ukraine “On Sea Ports of Ukraine,” has not been completed. The reform was based on strategic decisions aimed at, among other things, streamlining the mechanisms for attracting private investment related to the development of hydraulic structures at seaports.
However, for more than 10 years, the regulatory framework on this issue envisaged by the law has not been adopted. Moreover, due to the technical specifics of underwater hydraulic structures and the lack of an effective and transparent mechanism for the transfer of such facilities from private to state ownership on a compensatory basis, disputed legal relations arise regarding the rights of private owners to such facilities, including the use and disposal of such facilities, which generally leads to growing investor distrust against the background of measures taken by the Government to improve the investment climate and attract private capital to the country.
Now, during the war, this issue has become even more urgent. Ports are critical enterprises for the functioning of the Ukrainian economy.
Therefore, the EBA believes that the relevant law adoption will be a significant step towards business and investors and bring benefits to the state.