MINISTRY FOR DEVELOPMENT OF ECONOMY, TRADE AND AGRICULTURE OF UKRAINE

Transportation and trade facilitation in Ukraine CROSS-SECTOR OVERVIEW

Ukraine is a convenient hub that connects Europe and Asia. The country is located at the crossroads of major trans-European corridors, which ensures favorable conditions for the development of inter-regional economic relationships. A number of international transport corridors pass through its territory, in particular Pan-European transport corridors № 3, 5, 7, 9; corridors of the Organization for Cooperation of Railways (OSS) № 3-5, 7, 8, 10; transport corridor Europe - Caucasus - Asia (TRACECA).

Trade facilitation components

Favorable public policy All transportation means are available

Harmonization with EU standards Developed infrastructure

Qualified human capital Rapidly developing logistics

Key Figures

24 336 600 28.6 million tons of grain passenger traffic in 2019 cargo transported by Ukrzaliznytsia

230 checkpoints 19 800 km total length of Ukrainian railway networks

8 200 km total length of airlines 58 international routes in Ukraine

21* international airports 4 800 km total length of national routes

13 sea ports 36 700 km total length of gas pipelines

27 river ports 152 100 km total length of gas distribution networks

thousand tons 160 001 km length of the main oil and gas pipeline cargo turnover in 2019 4 500

230 million tons per year Ranked 66th among 160 countries by cargo handling capacity World Bank Logistics Performance Index (LPI) 2018

6,4% – GDP in 2018 by type of economic activity “Transport, warehousing, postal and courier activities” * temporary occupied territories and Crimea exclusive

Transportation and trade facilitation in Ukraine, 2018-2020 Trade facilitations efforts

Customs reform (single window, e-cabinet State policy addressed Membership in reputable launched; automated customs procedures at elimination of international trade organizations introduced; single treasury account for non-tariff barriers (WTO, EU AA, other FTA agreement; customs duties introduced) agreements in progress like ACAA, etc.)

Promising business Reform of State Service of Ukraine on deregulation initiatives State digitalization program Food Safety and Consumers Protection

Harmonization of trade National transport strategy Concession projects rules with EU acquis of Ukraine 2030 adopted

Kyiv Dnipro

Lviv 8 Kharkiv 1 14 2 14 1 2 3 3 6 5 15 10 13 11 9

16 9 11 12 7 4

10 13 7 5

5 6 4 2 4 7 12 Major international airports 12 8 1 Boryspil International Airport 8 6 * temporary occupied 2 Kyiv International Airport 13 10 territories and Crimea 3 Lviv International Airport 1 exclusive 9 4 Odesa International Airport 11 3 Odesa 5 Kharkiv International Airport 6 Zaporizhzhia International Airport Main railroad 7 Dnipropetrovsk International Airport interconnection 8 Kherson International Airport Sea ports stations 9 Ivano-Frankivsk International Airport 1 Bilhorod-Dnistrovskyi Sea Port 1 Kyiv 10 Chernivtsi International Airport 2 Berdyansk Commercial Sea Port 2 Lviv 11 Vinnytsia International Airport 3 Izmail Sea Port 3 Kharkiv 12 Mykolaiv International Airport 4 Mariupol Commercial Sea Port 4 Dnipro 13 Kryvyi Rih International Airport 5 Mykolaiv Sea Port 5 Zaporizhzhia 14 Rivne International Airport 6 Odesa Sea Port 6 Fastiv 15 Poltava Airport 7 Specialized Sea Port Olvia 7 Debaltseve 16 Uzhhorod International Airport 8 Pivdennyi Sea Port 8 Kovel 9 Reni Sea Port 9 Zhmerynka 10 Skadovsk Sea Port 10 Smila Network of trunk roads 11 Ust-Dunaisk Sea Port 11 Lozova M-highways 12 Kherson Sea Port 12 Znamyanka 13 Chornomorsk Sea Port 13 Koziatyn 14 Shepetivka

Transportation and trade facilitation in Ukraine, 2018-2020 Rivne Chernihiv Volyn Oblast Oblast Oblast Sumy Oblast Zhytomyr Oblast Lviv Kyiv Khmelnytska Oblast Oblast Oblast Poltava Kharkiv Oblast Ternopil Oblast Oblast Vinnytsia Oblast Lugansk Cherkasy Oblast Ivano-Frankivsk Oblast Dnipro Zakarpattia Oblast Kirovograd Oblast Oblast Oblast Chernivtsi Donetsk Oblast Oblast

Mykolaiv Zaporizhzhia Oblast Oblast Kherson Oblast

Odesa * temporary occupied Oblast territories and Crimea exclusive

Major oil and gas pipeline

Dolyna – Drohobych

Bytkiv – Nadvirna (within Ivano-Frankivsk Oblast)

Kachanivka – Okhtyrka

Hnidyntsi – Pryluky – Kremenchuk – Kherson, Kremenchuk – Cherkasy

Samara – Lysychansk – Kremenchuk – Kherson – Odesa

The Druzhba pipeline is the world's longest oil and gas pipeline and one of the biggest oil pipeline networks in the world. It carries oil and gas from Russia through the territory of the western regions of Ukraine (Volyn, Lviv and Zakarpattia Oblasts) to Belarus and Europe

Kremenchuk – Lubny – Kyiv

Hnidyntsi – Rozbyshivka – Kremenchuk

Odesa – Brody

Six logistics hubs are to be built by Ukrainian railway operator – Ukrzaliznytsia. Kovel, located 65 km away from the border with Poland, was found to be a promising location as one of the most powerful railway junctions in Western Ukraine. The hub has two major conveniences - easy access from the territory of Ukraine and available capacities. In addition, the hubs are planned to be located in Chop and Mukachevo, near Lviv and in Central Ukraine.

River transport is a promising segment, as well. In 2019, river vessels were used for the first time to deliver sunflower oil for export. The growth of grain exports contributes to the development of river logistics; so, we are about to see new vessels transporting grain by river.

Transportation and trade facilitation in Ukraine, 2018-2020 WHY UKRAINE

Competitive geographic position

Dynamic progress in trade facilitation efforts

Implementation of key TFA provisions

Consultancy in trade area is easily accessible and affordable

Digitalization of customs procedures

Diverse transport infrastructure

Full transport cycle

TRACECA

Pipeline facilities

Historically convenient sea routes

Skilled personnel

Trade in services

Paperless trade

Diverse system of free trade agreements

Transportation and trade facilitation in Ukraine, 2018-2020 CROSS-SECTOR EXPORT STRATEGY FOR TRANSPORTATION AND TRADE FACILITATION

Creating a favorable regulatory and managerial environment to ensure Vision the growth of Ukraine's export potential and improve business conditions while enhancing competitiveness and efficiency of the national economy

Strategic objectives

Strengthen interagency Enhance cooperation in the field coordination and ensure of customs information exchange strategic development with EU Member States in international trade Implement strategic reforming of international trade

Create conditions for Increase awareness of trade efficient trade-related services rules for businesses for companies to accelerate and reduce the cost of trade Improve the quality of operations business services in commercial infrastructure

Improve the regulatory Improve legislation to facilitate environment in trade and export international trade Create conditions to foster export potential of enterprises and expand trade

Transportation and trade facilitation in Ukraine, 2018-2020 Transportation and trade facilitation in Ukraine, 2018-2020 MINISTRY FOR DEVELOPMENT OF ECONOMY, TRADE AND AGRICULTURE OF UKRAINE