February 2018 - In a move to bolster the capacity of Ukrainian seaports, a 20% reduction of port duties payable in Ukrainian seaports became effective from 1 January 2018. The new rules are pursuant to Order No. 474 approved by the Ministry of Infrastructure of Ukraine on 27 December 2017.
Currently, Ukrainian seaports can charge up to 20 various port dues and fees and are known to be among the most expensive in the region. The seven main port dues (Tonnage, Lighthouse, Berth, Canal, Anchorage, Sanitary and Administrative) are state-regulated and, prior to reduction, could constitute up to 60–70% of the total port call costs for a shipping vessel. The discount covers all but one of the above-mentioned duties (excluding the Lighthouse due) in all seaports, except for three ports on the Duna River (Reni, Izmail and Ust-Dunaisk).
There are a few other notable exceptions. The decrease does not apply to ship calls for transit cargo handling, including the transit of petroleum products, passenger vessels and ice-breaker ships. Two types of governmentally-regulated fees for special services (pilotage and traffic control fees), which are not considered port dues, are also not subject to a reduction.
The move to reduce the mandatory payments is designed to attract additional capacity to Ukrainian ports and should benefit exporters of Ukrainian raw commodities. The Ministry's order was further approved by the Ukrainian cabinet on 11 January 2018.
Kinstellar continues to monitor the situation regarding the reform of Ukrainian port infrastructure. We will advise you of any developments.
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