Industrialists ask to cancel introduction from July 1 of new Ukrzaliznytsia contract on cargo traffic criticized by business, AMC

The confrontation between the natural monopolist in the field of rail transportation, Ukrzaliznytsia, and its customers continues, in connection with which industrialists ask the authorities to cancel the introduction of the new contract for carriage of goods, which is scheduled for July 1 of this year.

According to a press release of the Ukrainian Association of Producers of Ferroalloys and Other Electrometallurgy Products (UkrFA), despite the decision of the Antimonopoly Committee of Ukraine (AMC) of March 26, 2020, which recommended that Ukrzaliznytsia postpone the introduction of the new contract until completion of its revision, taking into account comments and suggestions provided by the operators of the freight transportation market, according to business associations, the monopolist formally reacted to the implementation of these recommendations. So, a meeting held on Skype only simulated the discussion of comments from customers of transportation services, and the transfer of the date from April 1 to July 1 is explained solely by quarantine restrictions.

Given the disregard of market requirements and recommendations of the antitrust authority by JSC Ukrzaliznytsia, as well as pressure from the monopolist on customers by not confirming transportation plans without concluding a new contract, business representatives, who provide more than 90% of orders for rail freight, sent a joint appeal to Prime Minister Denys Shmyhal, Head of the Presidential Office Andriy Yermak, NSDC Secretary Oleksiy Danylov, Head of the Parliamentary Committee on Transport Yuriy Kisel with the request to cancel the introduction of the new Ukrzaliznytsia treaty from July 1, 2020.

"Due to the apparent deficiency of the provisions of the new contract, its contradictions to the current legislation, the associations require canceling its entry into force until the completion of the revision taking into account the comments of cargo owners. For the period of revision of the new contract, it is necessary to extend the validity of the current contract for the provision of cargo transportation services by rail," UkrFA said.

Source: www.en.interfax.com.ua