The integration of Ukraine's transport sector into the European Union requires the elimination of monopolies and the opening of the market, according to Ukraine’s Deputy Minister of Development of Communities, Territories, and Infrastructure Serhii Derkach.
This was reported by the CFTS portal, citing the Ukrinform news agency.
“European integration, including in the transport sector, remains one of the country’s primary tasks. We have a very monopolized history in the rail transport market, which is a taboo for Europeans. The market should be open. The relevant bill has already been registered in the parliament,” Derkach said.
According to him, Ukraine is currently implementing projects under the Connecting Europe Facilities (CEF) grant program. Specifically, it is improving its railway network and developing European broad-gauge railways. Plans include securing funding for constructing a narrow-gauge railway line from Chernivtsi to Vadul-Siret and developing a European broad-gauge railway line from Uzhhorod to the border.
"We also want to extend the narrow-gauge line to Lviv, and eventually to Kyiv. Once that is done, I think foreign companies will be more interested in coming to us. However, we first need to implement critical EU directives, and our partners at the European Union Agency for Railways (ERA) will help us with this," he said.
The business community has criticized the bill. The European Business Association (EBA) has pointed out that the bill includes a provision stating that, transportation on infrastructure networks with a gauge of 1520 mm will be provided exclusively by state-owned enterprises for five years from the date of the law's entry into force, and that the law will enter into force only five years after the expiration or lifting of martial law in Ukraine.
"In other words, it will take at least 10 years, at best, before private operators can gain access to the 1520 mm track. The business community does not support this, and we hope this provision will be revised," the EBA said.
In addition, according to the association, the bill does not provide for the possibility of a market for the services of maintenance facilities, which would make it possible to attract private capital for the development of rail transport. There are a significant number of issues regarding definitions such as "infrastructure operator," "infrastructure of regional importance," "public infrastructure," and "infrastructure." The bill also lacks provisions for a public information system.
"The bill does not require the infrastructure operator to ensure the safety of freight and railway rolling stock," added the EBA.
As previously reported, in 2023, the European Commission prepared its first annual report for the European Council on the steps Ukraine needs to take following its application for EU membership in 2022 against the backdrop of Russian aggression.
The document includes a section on the necessary steps in the transport sector, especially railways. However, the pace of reform in the transport sector was assessed as very slow with limited progress, one of the lowest scores compared to other areas of institutional change.
To successfully progress towards EU membership, the European Commission recommended that Ukraine “further align and effectively implement the EU rail and road acquis and set up the appropriate administrative structures for rail transport, particularly a regulatory body” in 2024.
