Deduction of 90% of the profits to the state budget will reduce investment in the industry.
The rates of dividends for the sea ports authority (USPA) at the level of 90% may lead to decline in investment in the development of port infrastructure of Ukraine 2.6 times. This was stated by the head of the ASPU Raivis Veckagans.
He said that the deduction of 90% of the profits to the state budget will lead to the fact that capital investment in the development of 13 Ukrainian ports in 2020 will be reduced from 1.3 billion to 500 million. Thus, it will not allow to continue work on dredging in the ports, therefore, there will be an increased number of deepwater berths in the ports of the South and the Black sea, and will also block the reconstruction of berth no 3 in the port of Mariupol and berth No. 0 in Nikolaevsk to port.
It is also reported that lack of funding will jeopardize the implementation of Ukraine’s commitments before the European Commission on the redesign and evaluation of the impact on the environment necessary for increasing competitiveness of Ukrainian ports on the Danube river.
The head of the ASD clarified that the reduction of investment in port infrastructure will have a negative impact on attracting private investment into the sector.
“Now between ASD and businesses signed memorandums and agreements on the development of port infrastructure, estimated at over 30 billion. For each national currency, a sub of ASD, accounting on average for 5 UAH of private investment. However, without the state enterprise of reconstruction of berths and dredging, attachments stevedores in the construction of new terminals will not make sense. They simply will not be able to ensure that the new facilities at the old wharves and depths” – said Raivis Veckagans.
He also noted that the solution of problematic issues impeding the development of the port industry of Ukraine, depends largely on the adoption of key legislation and regulations. The head of the ASPU also appealed to President Vladimir Zelensky with a request to assist in the adoption of laws “On concession” and “On the development of a morekhozyaystvenny complex.”
We will remind that the Cabinet of Ministers with its resolution No. 364 dated 24 April 2019 increased the amount of deductions the net profit of state enterprises to the budget in 2019 with 75% to 90%.