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The adoption of the draft law on railway transport is expected this year

06/ 07/ 2021
  This was announced on July 1 to representatives of the European Business Association during the first meeting of the community with the new Minister of Infrastructure of Ukraine - Oleksandr Kubrakov. The Minister reported about the appointment of the person responsible for the draft law to the relevant committee of the Verkhovna Rada, so its adoption in the first reading is expected no later than 2021. It was also announced that this year the Ministry will begin work on reforming the funding of passenger transportation by railway. Currently, passenger rail traffic is unprofitable, so it gets subsidies at the cost of freight and this inefficient model has been opposed by businesses for years. Besides, the Ministry of Infrastructure plans a gradual convergence/equalization of tariff classes for the transportation of goods. Therefore, businesses will be notified on time of future changes in tariff policy. When asked by the business about the private traction pilot, Mr. Kubrakov said that he would do everything necessary to continue the pilot project for another two years. He also supported the EBA proposal to transfer Ukrzaliznytsia’s authority to control the quality of cars to an independent body. In recent years, Ukrainian carriers have been constantly faced with a critical shortage of road transport permits for international transport, namely, in the direction of the Republic of Poland. At the end of 2020, the business community requested an increase in the number of permits for transfers through Poland to at least 200,000 in 2021. The Ministry assures those negotiations are underway with the Polish side on this issue. Separately, Mr. Kubrakov confirmed the unlikeness of complete abolition of the need to obtain permits for vehicles of categories Euro-5 and Euro-6 for the transportation of goods from Ukraine to the EU. During the discussion, business representatives learned about the current status of a range of important documents for the maritime sector. In particular, the Ministry is expected to approve a draft resolution of the Cabinet of Ministers On approval of the Procedure and conditions for compensation of investments made by economic entities in strategic port infrastructure, after which it will be sent for approval to other authorities. Regarding the draft resolution of the Cabinet of Ministers on amendments to the Procedure for maintaining the Register of Seaports, this document will be revised with the consideration of the positions of the business community. It was also informed that the Ministry is developing a draft law on artificial land plots (alluvium of territories), aimed at solving the problem of new construction of hydraulic equipment in the water area. Mr. Kubrakov assured that in a month the draft will be finalized by the Ministry. Besides, the participants discussed issues related to port dues, modernization of IED infrastructure, transport sector plans to reduce CO2 emissions in Ukraine under the European Green Deal, private initiatives within PPP projects, concessions, etc. The European Business Association sincerely thanks the Minister and his team for their interest in cooperating with business. We hope for the continuation of this constructive dialogue!

This was announced on July 1 to representatives of the European Business Association during the first meeting of the community with the new Minister of Infrastructure of Ukraine – Oleksandr Kubrakov. The Minister reported about the appointment of the person responsible for the draft law to the relevant committee of the Verkhovna Rada, so its adoption in the first reading is expected no later than 2021.

It was also announced that this year the Ministry will begin work on reforming the funding of passenger transportation by railway. Currently, passenger rail traffic is unprofitable, so it gets subsidies at the cost of freight and this inefficient model has been opposed by businesses for years. Besides, the Ministry of Infrastructure plans a gradual convergence/equalization of tariff classes for the transportation of goods. Therefore, businesses will be notified on time of future changes in tariff policy.

When asked by the business about the private traction pilot, Mr. Kubrakov said that he would do everything necessary to continue the pilot project for another two years. He also supported the EBA proposal to transfer Ukrzaliznytsia’s authority to control the quality of cars to an independent body.

In recent years, Ukrainian carriers have been constantly faced with a critical shortage of road transport permits for international transport, namely, in the direction of the Republic of Poland. At the end of 2020, the business community requested an increase in the number of permits for transfers through Poland to at least 200,000 in 2021. The Ministry assures those negotiations are underway with the Polish side on this issue. Separately, Mr. Kubrakov confirmed the unlikeness of complete abolition of the need to obtain permits for vehicles of categories “Euro-5” and “Euro-6” for the transportation of goods from Ukraine to the EU.

During the discussion, business representatives learned about the current status of a range of important documents for the maritime sector. In particular, the Ministry is expected to approve a draft resolution of the Cabinet of Ministers “On approval of the Procedure and conditions for compensation of investments made by economic entities in strategic port infrastructure”, after which it will be sent for approval to other authorities. Regarding the draft resolution of the Cabinet of Ministers on amendments to the Procedure for maintaining the Register of Seaports, this document will be revised with the consideration of the positions of the business community. It was also informed that the Ministry is developing a draft law on artificial land plots (alluvium of territories), aimed at solving the problem of new construction of hydraulic equipment in the water area. Mr. Kubrakov assured that in a month the draft will be finalized by the Ministry.

Besides, the participants discussed issues related to port dues, modernization of IED infrastructure, transport sector plans to reduce CO2 emissions in Ukraine under the European Green Deal, private initiatives within PPP projects, concessions, etc.

The European Business Association sincerely thanks the Minister and his team for their interest in cooperating with business. We hope for the continuation of this constructive dialogue!

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