On 24 November 2012, the Resolution of the Cabinet of Ministers of Ukraine ("CMU") No. 1055 ("Resolution") entered into force. Pursuant to this Resolution the CMU has added eighteen Ukrainian state sea ports ("Ports") to the list of state property, which may be transferred through a concession.

Please find below the list of the Ports:

  • Odessa Commercial Sea Port;
  • Mykolaiv Commercial Sea Port;
  • Illichivsk Commercial Sea Port;
  • Yuzhny Commercial Sea Port;
  • Mariupol Commercial Sea Port;
  • Sevastopol Commercial Sea Port;
  • Kherson Commercial Sea Port;
  • Kerch Commercial Sea Port;
  • Feodosia Commercial Sea Port;
  • Yalta Commercial Sea Port;
  • Berdiansk Commercial Sea Port;
  • Bilhorod-Dnistrovsky Commercial Sea Port;
  • Yevpatoria Commercial Sea Port;
  • Izmail Commercial Sea Port;
  • Oktyabrsk Specialized Commercial Sea Port;
  • Reni Commercial Sea Port;
  • Skadovsk Commercial Sea Port;
  • Ust-Dunaysk Commercial Sea Port.

The Ministry of Infrastructure of Ukraine is authorized to adopt decisions on transfer of the Ports through a concession. The CMU has obliged the Ministry of Infrastructure, the Ministry of Economic Development and Trade and the Ministry of Finance to participate in the preparation of the conditions of the relevant concession tenders and concession agreements in order to ensure inclusion of specific obligations for concessionaires in the tender conditions. Among other things, the Resolution envisages that the pre-existing liabilities of the Ports relating to the assets which are subject to the concession (including liabilities arising from loans) shall be transferred to the concessionaire. The procedure for the transfer of such liabilities should be specified in the concession tender documentation.

The general procedure for the transfer of state and municipal property through a concession is established by the Law of Ukraine "On Concession". Specific provisions with regard to concession of sea ports are contained in the Law of Ukraine "On Sea Ports of Ukraine", which will come into force on 14 June 2013.

Should you have any questions, please, do not hesitate to contact us.

Oleksandr Kurdydyk
Partner, Head of Finance & Projects
T +380 (44) 490 95 70
F +380 (44) 490 95 77
E oleksandr.kurdydyk@dlapiper.com

Dmytro Lapa
Associate, Finance and Projects
T +380 44 490 95 75
F +380 44 490 95 77
E dmytro.lapa@dlapiper.com

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The matters covered in this newsletter are intended as a general overview. This newsletter is not intended, and should not be used, as a substitute for taking legal advice in any specific situation. DLA Piper Ukraine LLC will accept no responsibility for any actions taken or not taken on the basis of this newsletter. If you would like further advice, please contact our Kyiv Team at +380 44 490 9575.