Ukrainian Government measures to ensure logistics routes

As part of the provision of Wartime Logistics, the Government continues to take measures to ensure the stable operation of new logistics routes.

Today, more than 70% of world trade is accounted for by maritime transport, on the stability of which depends on world economic development, including Ukraine. However, due to Russia’s armed aggression against Ukraine, aggravation of the military-political situation in Ukraine and military risks, insurance companies are no longer able to cover insurance payments for ships bound for the northwestern Black Sea and Ukrainian ports in the Sea of ​​Azov.

At the same time, coverage continues to be provided for Ukrainian seaports in the Danube region. We are talking about the possibility of full operation of only three Ukrainian seaports: Reni, Izmail, Ust-Dunaisk. Their role is becoming a priority.

Currently, it is impossible to export basic cargo (grain, ore, ferrous metals, etc.) through the ports of our country. Therefore, there was a need to redirect freight flows through international railway crossings of Ukraine to the Republic of Poland, the Slovak Republic, Romania, Hungary and further to Western Europe.

In order to ensure the further possibility of ships entering the ports of Ukraine in the Danube region and in order to stabilize the situation of transportation by rail, providing guarantees for shipowners, railway carriers and insurance companies, March 30, 2022 the Government issued an order № 255-r “Some issues ensuring the safety of navigation in the waters of Ukrainian ports in the Danube region and transportation by rail “. The text of the order at the link: https://bit.ly/3DpV000

The order provides for the allocation of funds from the reserve fund of the state budget to compensate for damage caused by the armed aggression of the Russian Federation against Ukraine and hostilities in Ukraine, and in case of refusal of insurers to provide insurance coverage.

Reimbursement is provided for charterers, operators and / or owners of sea and inland waterway vessels flying the flag of Ukraine and under the flags of foreign countries – in case of such vessels in the waters of Ukrainian ports in the Danube region, as well as for owners and / or operators of the warehouse admitted to circulation by the railways of the European standard – in case of stay of such rolling stock in the territory of Ukraine.

Such measures make it possible to avoid problems due to the potential threat of a significant increase in the cost of insurance for these Ukrainian ports, as well as possible failures of insurance companies to ships in the region.

Source: Ministry of Infrastructure of Ukraine, https://mtu.gov.ua/news/33508.html