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Discussion of the new version of the draft law “On Railway Transport of Ukraine”

15/ 08/ 2024
  Yesterday, representatives of the European Business Association’s Logistics Committee participated in a meeting chaired by the Verkhovna Rada Committee on Transport and Infrastructure, where the new draft law On Railway Transport of Ukraine was discussed. The meeting also included representatives from the World Bank, the American Chamber of Commerce in Ukraine, Ivanna Klympush-Tsintsadze, Chair of the Verkhovna Rada Committee on Ukraines Integration into the EU, Vasyl Shkurakov, Acting Minister of Communities, Territories and Infrastructure Development, and Yevhen Lyashchenko, Chairman of the Board of Ukrzaliznytsia. This was the first joint meeting between the business community and the drafters of the law, during which businesses highlighted some key points that, according to the Logistics Committee experts, need to be refined in the draft law. In particular, Daria Sichkar, Manager of the Logistics Committee, emphasized the following: Businesses understand and support the adoption of the new On Railway Transport law, as Ukraine is moving toward the EU and has corresponding obligations to liberalize the railway transport market. This law will also be a crucial step toward fully opening the market for private traction operators. The law requires refinement before its official registration in the Verkhovna Rada, specifically:  The draft law contains a provision stating that for five years from the date of its enactment, transportation on infrastructure networks with a 1520 mm gauge will be carried out only by state-owned enterprises. Moreover, the law will only come into force five years after the termination or cancellation of martial law in Ukraine. In other words, private operators would be able to access the 1520 mm gauge track only in 10 years at best, which is categorically opposed by businesses, and we hope to amend this provision. The draft law does not foresee the possibility of a market for service facilities, which would allow private investment in railway transport development. There are significant issues regarding definitions such as infrastructure operator, regional infrastructure, public infrastructure, and infrastructure. The absence of provisions for a public Information System. The draft law does not mandate the infrastructure operator to ensure the safety of cargo and rolling stock. A number of other critical provisions that will be further discussed at a separate meeting. We hope that together with the authors of the draft law, we can refine it. The Logistics Committee of the Association is currently preparing a comparative table, which will soon be submitted to the relevant Verkhovna Rada Committee. We look forward to productive work on the documents text in a more focused format.
01/

Yesterday, representatives of the European Business Association’s Logistics Committee participated in a meeting chaired by the Verkhovna Rada Committee on Transport and Infrastructure, where the new draft law “On Railway Transport of Ukraine” was discussed.

The meeting also included representatives from the World Bank, the American Chamber of Commerce in Ukraine, Ivanna Klympush-Tsintsadze, Chair of the Verkhovna Rada Committee on Ukraine’s Integration into the EU, Vasyl Shkurakov, Acting Minister of Communities, Territories and Infrastructure Development, and Yevhen Lyashchenko, Chairman of the Board of Ukrzaliznytsia.

This was the first joint meeting between the business community and the drafters of the law, during which businesses highlighted some key points that, according to the Logistics Committee experts, need to be refined in the draft law.

In particular, Daria Sichkar, Manager of the Logistics Committee, emphasized the following:

  1. Businesses understand and support the adoption of the new “On Railway Transport” law, as Ukraine is moving toward the EU and has corresponding obligations to liberalize the railway transport market. This law will also be a crucial step toward fully opening the market for private traction operators.
  2. The law requires refinement before its official registration in the Verkhovna Rada, specifically: 
  • The draft law contains a provision stating that for five years from the date of its enactment, transportation on infrastructure networks with a 1520 mm gauge will be carried out only by state-owned enterprises. Moreover, the law will only come into force five years after the termination or cancellation of martial law in Ukraine. In other words, private operators would be able to access the 1520 mm gauge track only in 10 years at best, which is categorically opposed by businesses, and we hope to amend this provision.
  • The draft law does not foresee the possibility of a market for service facilities, which would allow private investment in railway transport development.
  • There are significant issues regarding definitions such as “infrastructure operator,” “regional infrastructure,” “public infrastructure,” and “infrastructure.”
  • The absence of provisions for a public Information System.
  • The draft law does not mandate the infrastructure operator to ensure the safety of cargo and rolling stock.
  • A number of other critical provisions that will be further discussed at a separate meeting.

We hope that together with the authors of the draft law, we can refine it. The Logistics Committee of the Association is currently preparing a comparative table, which will soon be submitted to the relevant Verkhovna Rada Committee. We look forward to productive work on the document’s text in a more focused format.

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