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WG on Seaports Minutes September 2011

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Working Group on Sea Ports Development Meeting

7 September, 2011, 16:00

Chamber’s Conference Facility

Horizon Park Business Center, 12, Amosova vul., 15 Floor



List of attendees:

Mr. Oleg Kalensky, UVK, Co-Chair of the Chamber Logistics and Transportation Committee

Ms. Victoria Papenkova, CMS Cameron McKenna LLC, Secretary of the Chamber Logistics and

Transportation Committee



Ms. Olena Bochkovska, The Chamber

Ms. Viktoriya Gorina, Vashchenko, Bugay and Partners

Ms. Yaroslava Marusyk, The Chamber

Mr. Pavlo Mishchenko, Arzinger

Mr. Maxim Oleksiyuk, KM Partners

Mr. Dmitriy Orendarets, Clifford Chance LLC

Mr. Andriy Pidhayny, AGRECA Law Firm

Mr. Oleksandr Primak, Transinvestervice

Mr. Volodymyr Tkachenko, ArcelorMittal Kriviy Rih, OJSC

Mr. Volodymyr Vashchenko, Vashchenko, Bugay and Partners

Mr. Felix Zinchenko, System Capital Management (SCM)





On Wednesday, September 7th, 2011 the Chamber Working Group on Sea Ports Development Meeting

took place.



The meeting was devoted to the examination and discussion of expert opinions of the Working Group

Members regarding the status of sea ports and development of the Chamber position with respect to the

legislative amendments that are necessary for development of sea ports and sea transport area.



The first speaker, Mr. Pavlo Mishchenko, Senior Lawyer, Arzinger highlighted the importance to

comment the new Draft Law “On Sea Ports”. He mentioned that there is no need to comment existing

Draft Law #0881 “On Sea Ports” because of no chance of its successful addoption.



Mr. Andriy Pidhayny, Lawyer, Portinvest, said, that the Working Group upon the Ministry of

Infrastructure of Ukraine has finished its work on the new draft law and that the document is already under

consideration of the Ministry. It was suggested to send a request to the Ministry for getting text of the draft

law, prepared by the Working Group.



Ms. Viktoriya Papenkova, Lawyer, CMS Cameron McKenna LLC, agreed on statement that the

Chamber Working Group does not have to work on the improvement of the Draft Law #0881. Ms.

Papenkova suggested sending the Chamber Position Paper without commenting the draft law, because the

provisions of two documents wouldn’t be contradicted to each other.





____________________________________________________________________________________________________________________________________

_

Board of Directors: Mr. Ian Borden, McDonald's – Chairman; Mr. Boris Krasnyansky, PwC – Vice Chairman; Mr. Jason Murphy, British

American Tobacco – Treasurer; Mr. Jacquot Boelen, METRO Cash & Carry – Secretary; Mr. Didier Casimiro, TNK-BP; Mr.

Peter Chernyshov, Slavutich, Carlsberg Group; Mr. Steven Fisher, Citibank; Mr. Walter Gordon, Coca-Cola; Mr. Andre

Küüsvek, European Bank for Reconstruction and Development; Mr. Yuri Miroshnikov, Ukraine International Airlines; Mr.

Jacques Mounier, Corporate and Investment Bank Credit Agricole; Mr. George Nassar, Procter & Gamble; Mr. Andrzej

Rozycki, Cargill; Mr. Floris Schuring, KPMG; Mr. Dmitry Shymkiv, Microsoft.



President: Mr. Jorge Zukoski

Mr. Volodymyr Tkachenko, Chief Advisor on Government Relations, ArcelorMittal Kriviy Rih,

OJSC, suggested waiting until the draft law will become public, and the Chamber Position could include

comments to the provisions of the draft law.



Mr. Pidhayny stated the need to decentralize financial flow with streaming part of it to the regional budget

for infrastructure development. He stressed the need to take a stand for an approval of the draft law,

explaining that the law reflects the main goals that were set, like stimulating investments, even by different

mechanisms, such as corporatization. Mr. Pidhayny also suggested involving international experts when

the draft law will be publicly available. Mrs. Yaroslava Marusyk, The Chamber, suggested organizing a

round table with international experts to discuss the draft law when it is officially published.



Mr. Oleg Kalensky, Strategic Marketing & Development Director, UVK, supported the suggestion to

send an official request to the Ministry of the Infrastructure of Ukraine with a request to receive the text of

the draft law.



Ms. Viktoriya Papenkova, suggested enclosing into the Chamber Position recommendations or concerns

that cover problems of the industry in general.



Mr. Pidhayny offered to view his suggestions from the last meeting to be put in general into the Chamber

Position Paper, but with some edits – port administration should become a commercial entity, and it does

not have to pay any dividends.



Mr. Maxim Oleksiyuk, Partner, KM Partners, stressed the need to give sea port status of corporation.



During the meeting different issues were discussed, such as contrast between two models of sea port

administration, corporatization, role of the community in sea port area development, legal status of sea

port, and its privatization.



ACTION:



Key statements of the Draft Chamber Position on Sea Ports Development were developed on which

consensus have been reached among the Members of the Working Group.



It was agreed that Members of the Working Group will elaborate on each statement of the Draft Chamber

Position and provide a brief comment to each point till Monday, September 19th, 6:00PM.



1.Necessity to adopt a special law on regulation of sea ports’ activities in Ukraine, in which the legal status

of sea ports will be also defined.



2.A special law should foresees amendments to the Merchant Shipping Code of Ukraine, Land and Water

Codes and other laws of Ukraine concerning possibility of economic activity on the territory of the sea

ports.





____________________________________________________________________________________________________________________________________

_

Board of Directors: Mr. Ian Borden, McDonald's – Chairman; Mr. Boris Krasnyansky, PwC – Vice Chairman; Mr. Jason Murphy, British

American Tobacco – Treasurer; Mr. Jacquot Boelen, METRO Cash & Carry – Secretary; Mr. Didier Casimiro, TNK-BP; Mr.

Peter Chernyshov, Slavutich, Carlsberg Group; Mr. Steven Fisher, Citibank; Mr. Walter Gordon, Coca-Cola; Mr. Andre

Küüsvek, European Bank for Reconstruction and Development; Mr. Yuri Miroshnikov, Ukraine International Airlines; Mr.

Jacques Mounier, Corporate and Investment Bank Credit Agricole; Mr. George Nassar, Procter & Gamble; Mr. Andrzej

Rozycki, Cargill; Mr. Floris Schuring, KPMG; Mr. Dmitry Shymkiv, Microsoft.



President: Mr. Jorge Zukoski

3.Definition of the “sea port” as defined by limits territory and aquatorium that are equipped for vessels’

and passenger service, for freight, transport and forwarding activities as well as other economic activities.



4.So called “legalization” of some enterprises’ activities that are located on the territories of t sea ports of

Ukraine at the time of entry into force of a special law.



5. Port duties issue: in a working format.



Next Chamber Working Group on Sea Ports Development Meeting is scheduled for Tuesday,

October 4, 4:00PM.









____________________________________________________________________________________________________________________________________

_

Board of Directors: Mr. Ian Borden, McDonald's – Chairman; Mr. Boris Krasnyansky, PwC – Vice Chairman; Mr. Jason Murphy, British

American Tobacco – Treasurer; Mr. Jacquot Boelen, METRO Cash & Carry – Secretary; Mr. Didier Casimiro, TNK-BP; Mr.

Peter Chernyshov, Slavutich, Carlsberg Group; Mr. Steven Fisher, Citibank; Mr. Walter Gordon, Coca-Cola; Mr. Andre

Küüsvek, European Bank for Reconstruction and Development; Mr. Yuri Miroshnikov, Ukraine International Airlines; Mr.

Jacques Mounier, Corporate and Investment Bank Credit Agricole; Mr. George Nassar, Procter & Gamble; Mr. Andrzej

Rozycki, Cargill; Mr. Floris Schuring, KPMG; Mr. Dmitry Shymkiv, Microsoft.



President: Mr. Jorge Zukoski



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