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Should profits of Ukrainian ports be invested in their cities' infrastructure?

02 Oct, 2021
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Should profits of Ukrainian ports be invested in their cities' infrastructure?

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The profits of ports should be returned to the cities in which they are located for the development of their infrastructure, said Oleksandr Senkevych, Mayor of Nikolaiev, on the sidelines of the International Mayors Summit in Kyiv.


Nikolaiev was a city of shipbuilders. Now the factories are standing idle, Nikolaiev has turned into a port city. However, we do not receive money from the port infrastructure to the local budget, except for personal income tax and land lease.

Oleksandr Senkevych, Mayor of Nikolaiev

He recalled that last year the net profit of the Ukrainian Sea Ports Authority amounted to more than UAH 2.6 billion.

I think that this amount needs to be “halved.” Half of the profits is to be divided between the port cities, in proportion to the transshipment of goods. Cities should receive a portion of what they have earned for the country. Then we will be able to restore our infrastructure.

In his opinion, it will be possible to talk about the restoration of production and the attraction of significant investments in shipbuilding after the adoption of a law on technology parks. Senkevych considers promising a mechanism for the establishment of tax credits and preferential rates by local governments.

Roughly speaking: they built a plant for EUR 100 million, you are provided with a tax credit for 50% of this amount for five to seven years. Personal income tax and land tax are paid from this amount. It is profitable for the enterprise to work officially, pay high salaries to employees.


The Odessa Journal

The Odessa Journal

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