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The Ministry of Infrastructure will cover risks for shipping and rail carriers

07 Jun, 2022
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The Ministry of Infrastructure will cover risks for shipping and rail carriers

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The Cabinet of Ministers of Ukraine has decided to allocate UAH 250 million to the Ministry of Infrastructure from the reserve fund of the State Budget of Ukraine to ensure the safety of navigation in the waters of Ukrainian ports in the Danube region and rail transport.

The funds will be kept in a contingent account of the Ministry of Infrastructure of Ukraine and, if necessary, will be provided to compensate for losses caused by Russia's aggression against Ukraine.

"In the conditions of the blockade of all seaports of Ukraine, the load on Ukrainian Danube ports and railways has significantly increased. The state is interested in increasing the flow of goods and, accordingly, the work of business in the region. We take some of the risks to encourage companies to provide foreign vessels and rolling stock to increase import and export traffic. Thanks to the decision, carriers who have been denied risk insurance will be able to obtain the necessary financial guarantees. We expect that thanks to this, we will be able to increase the volume of traffic significantly," said Minister of Infrastructure Alexander Kubrakov.

Who will be able to use such a mechanism:

  • owners and/or operators of rolling stock located on the territory of Ukraine and allowed for circulation by railways of European standard (1435 millimeters)
  • charterers, operators and/or owners of seagoing and inland waterway vessels located in the waters of Ukrainian ports in the Danube region and operating under the flag of Ukraine or under the flags of foreign countries.

Work is underway to agree on all the details of the financial support mechanism to make the guarantee process as transparent as possible.

It will be recalled that the Ministry of Infrastructure set up a similar insurance mechanism in February to ensure the safety of flights. Thanks to it, carriers were able to continue to operate flights within the country and to other destinations in the tense security conditions that preceded the full-scale invasion of Russia.


The Odessa Journal

The Odessa Journal

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