Andrii Muravskyi, an author of this post, was trying to present different point of views on possible consequences of the adoption of the law of Ukraine “On Inland Water Transport”. However, analyzing various statements he made a mistake. In particular, it is about NIBULON’s position on the issue of access of vessels under a foreign flag to inland waterways of Ukraine. The author by some reasons made conclusions that “… NIBULON is categorically against “foreigners” in Ukrainian rivers”. Given the false conclusions, we consider it is necessary to explain the company’s position on this issue once again.
The thing is that the authors of the draft law “On Inland Water Transport” are trying to convince everyone that at present Ukrainian rivers are “closed” for foreign carriers; if we adopt these draft laws, freight transportation by rivers will immediately increase to 25 million tons of cargoes per year.
In fact, this is an undeniable invention, as professionals of river industry know that vessels under flags of countries with which Ukraine hasn’t signed international agreements on navigation on inland waterways can entry the river ports of Ukraine, having received a temporary permit beforehand. The appropriate procedure for obtaining such permits is approved by Order of the Ministry of Infrastructure dated 09.11.2012 No. 665.
This procedure is extremely simple and transparent. Moreover, issuing such a permit is completely free; the state does not charge a penny for foreign shipping companies to pay. 
It is enough if a foreign shipowner (or vessel´s captain) appeals to Ukrtransbezpeka, no later than ten days before vessel arrival to the river port of Ukraine, with a half page request which should contain the following information: name of the vessel which performs transportation; name / surname, first name and patronymic of the shipowner; name of the country whose flag the vessel is flying; amount and type of cargo; name of port of loading and port of discharge; estimated date of arrival to the river port of Ukraine and confirmation of the river port commitment to accept the ship. If a foreign vessel plans to carry export goods, the State Service of Ukraine for Transportation Safety posts an announcement on its official website on the day of request registration containing information about the transportation of export cargoes. In case if a Ukrainian carrier intends to perform such transportation, there are negotiations which result in decision of Ukrtransbezpeka on grant or refusal to give permission to foreign vessel. If Ukrainian carriers are not interested in such transportation, the foreign vessel receives a permission of Ukrtransbezpeka freely. Such an approach is logical because the country, first of all, must defend the interests of national business, as it is being done all over the world. If a foreign shipowner plans to transport goods solely by inland waterways (within the customs territory of Ukraine), the permission is issued automatically. 
There are only two reasons for refusal to issue a permit: the untimely request to receive it; lack of information required for permit registration. In accordance with the legislation, the given list of grounds for refusal to issue permits is exhaustive.
The request is a formal message about intention to entry a Ukrainian river port, and it does not bother a foreign carrier anyway.
Thus, the state provides foreign shipping companies with free opportunity to work on inland waterways of Ukraine, providing only formal accounting of such transportation.
So, work of foreign companies is controlled by the state, foreign shipowners are required to provide planned character of transportation. Ukraine doesn’t set any other obstacles, groundless barriers or restrictions to foreign carriers.
So, if there are cargoes, practically any foreign vessel has an opportunity to receive a permit to entry river ports of Ukraine for free and in a short period of time.
However, the draft laws No. 2475a, 2712, and 2713 provide for to create background for practically uncontrolled use of Ukrainian rivers by foreign vessels, without taking into account opportunities of Ukrainian carriers, by introducing the principle “call at anybody” without taxation and control.
The given draft laws have a number of essential drawbacks which will result in negative consequences for economy of Ukraine.
Again, Customs Code of Ukraine (Article 106) already provides for the possibility of foreign vessels import into the customs territory of Ukraine on preferential terms, namely the temporary import with conditional partial exemption from customs payments.  This mode provides for monthly payment of only 3% of the customs dues payable in case of release for free circulation of these vessels in the customs territory of Ukraine. For example, while importing vessel worth USD 1.5 million for 3 months, the amount of customs will comprise USD 35.1 thousand or only USD 0.84 per ton of cargo transported within this period (if four cargo trips of 3 500 tons were made every month). 
There is a so-called “grey” scheme in Ukraine in order to avoid additional expenses. For example, any vessel of “Volgo-Don” class under a foreign flag has an opportunity of free navigation on inland waterways of Ukraine, bunkering with fuel behind the 12-miles zone (in international waters) and paying no excise tax in Ukraine (USD 21.5 thousand out of 180 tons of fuel). When entering into the customs territory of Ukraine, the given vessel can declare the given fuel as ship reserves and pay no customs duties to the budget out of it. During a navigation season the given vessel can perform up to 12 similar trips resulting in total budget loss of up to USD 258 thousand (UAH 7.2 million) per one vessel.
Lobbying for adoption of the given draft laws their authors will provide uncontrolled access for vessels under foreign flag to inland waterways of Ukraine without additional content control of their bunkers and free of excise tax on imported fuel to Ukraine. This, in turn, will promote development of “grey” free of customs import of fuel to Ukraine. 
The non-payment of excise tax by vessels under foreign flag will lead not only to losses of the state budget but also put them in more advantageous position as compared to vessels under the state flag of Ukraine. Domestic carriers pay EUR 95 per 1 000 liters of fuel or more than USD 0.4 per ton of transported cargo to the budget. In addition, foreign vessels buy fuel in international waters at the price which is by USD 50 per ton cheaper than in Ukraine.  Moreover, vessels under the national flag also pay rental payment for special water use which represents about USD 0.09 per ton of cargo. However, a carrier under a foreign flag will have no such “extra payments” to the cost of transportation and will have more advantageous position in the market of transportation in Ukraine.
This, in turn, promotes the transfer of vessels under the state flag of Ukraine to “convenient one”, followed by its return to Ukraine under the foreign flag; shipowners will move to foreign jurisdiction, i.e. use of “offshore zone”. As a result, Ukraine will lose it fleet.
Moreover, exemption of transactions on import of vessel into the customs territory of Ukraine for inland transportation from customs duties will encourage import of second-hand vessels. It’s clear that there will be no question of domestic shipbuilding development.
Here you can read in detail on such negative consequences as the shortfall in customs duties during the import of foreign vessels into the customs territory of Ukraine, loss of existing jobs and inability to create new ones in shipbuilding and shipping industries resulting in decrease of payments to budgets and funds, and also about consequences of investment unpredictability in shipbuilding industry.
Thus, despite the fact that the state has already created all necessary conditions for the development of river industry, including import of vessels into the territory of Ukraine with its further customs clearance and registration, the authors of the draft laws No. 2475 a, 2712, and 2713 are trying to legalize the activity of non-residents-shipowners.  They allow them to do business activity within the territory of Ukraine without taxation through coastal transportation between sea ports and transportation by inland waterways using vessels under foreign flags, and without registration in the state fiscal service as taxpayers. It enables one to pay no rental payment for special water use, excise tax on fuel, and unified social tax.
Besides the negative consequences for the economy of our country, the draft laws will have negative impact on the environment. Thus, a large number of old vessels to be imported to Ukraine without taxation will create additional risks for the environment of waterways, if there are no state programme of their recycling and recycling payments to the budget.
Moreover, international experience, the authors of the draft laws often try to make references to, shows that no country in the world, protecting interests of national flag and ship producer, gives the unlimited access to its inland waterways for vessels under foreign flags.
The conclusions are obvious. Our state already provides foreign shipping companies with an opportunity to work on inland waterways of Ukraine, and in some cases creates favourable conditions for their activity. Our company doesn’t oppose the work of vessels under foreign vessels. We stand for equal conditions both for Ukrainian and foreign vessels not only in terms of tariff policy but also in terms of tax policy.