Wartime logistics: reorientation of export due to state insurance of railway transportation

The government has decided to allocate funds from the reserve fund of the state budget to cover insurance in case of refusal to provide it by the insurance companies. Reimbursement is provided for owners and operators of rolling stock allowed for circulation by railways of European standard — in case of such rolling stock being on the territory of Ukraine. The relevant order was adopted by the Cabinet of Ministers on March 30.

Due to the aggression of the Russian Federation, it is impossible now to export the main cargoes (grain, ore, ferrous metals, etc.) through the ports of Ukraine. They accounted for about 70% of turnover.

That is why there was a need to redirect cargo flows through Ukraine's international railway crossings to the Republic of Poland, the Slovak Republic, Romania, Hungary and further to Western Europe. By providing compensation for losses by railway transport, the government is creating conditions for the stable operation of new logistics routes.

State compensations will also be provided to shipowners in the ports of the Danube region if insurance companies refuse to provide it.

 

Reference source: Ministry of infrastructure of Ukraine 

 

 

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