Interlegal experts at the conference «Grain transportation and storage in Ukraine 2016»
The conference “Grain transportation and storage in Ukraine 2016” was held on October 27, 2016, at the Premier Palace Hotel, Kiev. Interlegal senior lawyer Karyna Gorovaya presented a special report “Preparing and shipment of small export grain lots” and Vadim Popelyuk, attorney-at-law and head of specialization “Ports and Terminals”, participated in the panel discussion “Investment in port terminals – realities, nuances and solutions”. The conference gathered over 70 participants including representatives of professional organizations.
Karyna Gorovaya highlighted the most popular trade schemes used by the Ukrainian traders for small export grain lots and correlated risks.
Since the Ukrainian traders, just entering the international market, prefer to export small grain lots in containers, the report partially concerned peculiarities of cooperation with sea line carriers. In particular, Karyna stated that the most problematic issues for cargo owners may be withholding of consignment documents, cargo retention by line carrier, cargo idle stay at the discharge port followed by demurrage accrual. The report was summarized by case studies and curious events from practice of Interlegal experts acting in the traders’ interests.
Panel discussion regarding investments into port industry was the most vivid one which confirmed special theme vitality for both business and state. Business is expecting changes from state in law regulation to attract investors looking forward for actions from the Ministry of Infrastructure of Ukraine. Vadim highlighted that today lease of state-owned property remains the only one operating mechanism of attracting investments. Lease approach needs to be changed in respect of further lessee’s (investor’s) right on inseparable improvements and right on reimbursement of investments into inseparable improvements in case of such agreement cancellation. In general, such approach has a short-term perspective priority, due to impossibility to attract large investor based on state-owned property lease.
We highlighted once more that use of concession and other investment mechanisms is a positive trend, but privatization remains the basic mechanism of bringing investments. The Ukrainian government took a major step: included all seaports as state-owned enterprises into the Group G of objects available for privatization.
We express gratitude to the Information Service “Industrial Cargos” and to Natalya Krut personally for the professionally organized event and we hope that proposed solutions of complex issues will be implemented in real life tomorrow.
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