LAW OF UKRAINE

of February 7, 2002 No. 3022-III

About the Comprehensive program of approval of Ukraine as transit state in 2002-2010

For the purpose of attraction of additional receipts in budgets of all levels at the expense of growth in volumes of transit transportations of passengers and loads through the territory of Ukraine the Verkhovna Rada of Ukraine decides:

1. Approve the Comprehensive program of approval of Ukraine as transit state in 2002-2010 (further - the Program) which is applied.

2. To the Verkhovna Rada of the Autonomous Republic of Crimea, local government bodies to provide in drafts of the relevant budgets expenses on work according to the Program.

3. To the Cabinet of Ministers of Ukraine when forming drafts of the State program of economic and social development of Ukraine and the Government budget of Ukraine on 2003 and the next years to provide centralized capital investments on work according to the Program.

4. This Law becomes effective from the date of its publication.

Approved by the Law of Ukraine of February 7, 2002 No. 3022-III

The complex program of approval of Ukraine as transit state in 2002-2010

I. GENERAL PROVISIONS

Current trends of development of world economy are characterized by permanent expansion of economic bonds and the international economic cooperation. Therefore integration processes became the priority direction in policy of developed countries that provides creation of conditions for free movement of goods, services, the capitals, labor power. It causes the permanent growth of transnational flows and the international transit of loads. For many states transportation of transit cargoes through the territory became important source of export of services, currency receipts in the budget, creations of additional workplaces. Questions of development of transit take the main place in the European transport policy. Confirmation of it is arrangement of the international transport corridors on the main directions of transnational transportations.

The advantageous geographical location of Ukraine on the way of the main transit flows between Europe and Asia, availability of non-freezing Black Sea ports, the developed network of the railroads, highways, pipelines in the width and meridional directions creates all necessary premises for growth in volumes of transit of loads.

Due to future accession of Ukraine to the World organization of trade ensuring free transit of loads and its development will promote increase in efficiency of foreign trade, equal inclusion of Ukraine in system of the international labor division, to creation of stable source of currency receipts in the budget. At the present stage the growth in volumes of the international transit across the territory of Ukraine can become important factor of stabilization and structural adjustment of its economy. At the same time it is necessary to consider that transit as type of export of transport services is one of the most effective, and investments into this sphere of transport activities give bystry return.

As the international practice witnesses, effective functioning of transit system depends on the national legal system complying to the generally accepted international standards, its stability, optimum tariff and price and tax policy in this sphere, the developed transport infrastructure of the international value and check points equipped at high technological level through borders, uses of the progressive, constructed on the logistic principles technologies of transportations and cargo handling, modern systems of the organization of document flow, calculations, information support.

Technological capacities of national transport infrastructure give the chance to transport annually by the railroads, inland water and road transport and to process over 60-70 million tons in ports and to deliver pipeline transport about 200 million tons of transit cargoes. However the actual amounts of transit make only 200 million tons, i.e. the available transit capacity of Ukraine is used for 70 percent, and on common carrier (without pipelines) - only for 50 percent.

By estimates of the international experts of the UN and the EU and forecasts of Council for studying of productive forces of National academy of Sciences of Ukraine, till 2010 increase in barter in the directions of the European axis "the North - the South" on 25-30, Eurasian - for 30-35 percent is expected. With respect thereto perhaps corresponding increase in transit transportations on the territory of Ukraine. Projections of their amounts in 2005-2010 are given in table 1.

Table 1

Amounts of transit transportations on the territory of Ukraine

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