"As of 2023, the progress of railway transport reform remains stalled due to incomplete legislation, despite partial compliance with EU technical standards," the document states.
It is noted that Ukraine lacks an independent regulator.
"A new railway law needs to be adopted to create legislative conditions for the functioning of a competitive market for passenger and freight transportation, which will enable the implementation of the future railway law," the European Commission added.
The authors of the article reminded that at the end of October, a draft law "On the System and Features of the Railway Transport Market in Ukraine" №12142, presented by the Cabinet of Ministers, was registered in the Verkhovna Rada. The final and transitional provisions note that the law will only come into effect five years after the end of martial law in Ukraine, and non-state sector entities will be able to operate on the 1520 mm railway network only two years thereafter.
The European Business Association explained that this draft law was not discussed with businesses and stakeholders and contains numerous inconsistencies. The main issue is that allowing private companies access to railway transportation is a key commitment made by the Cabinet in international agreements with the World Bank and the EU Ukraine facility, so this provision needs to be revised.