Ukrainian transport companies may receive compensation amounting to 10–15 per cent of their investments in the modernisation of vehicles and equipment in line with European Union standards, according to Gabriel Blanc, head of the working group on Ukraine’s recovery at the European Commission’s Directorate-General for Enlargement and the Eastern Neighbourhood.
According to ‘Interfax-Ukraine’, the relevant mechanism applies to companies that take out loans from Ukrainian banks and invest in technology that complies with EU standards.
We have what is known as a ‘cashback’ mechanism: if a company takes out a loan from a Ukrainian bank and invests in technology that meets EU standards, we can offer a refund of 10–15 per cent of the investment amount, — Blanc noted during the event ‘Regional Dialogues with Business on European Integration: The Transport Sector’ in Lviv.
According to him, Ukraine has currently fully implemented less than 10 per cent of EU transport rules and standards, and less than half have been partially implemented. Key priorities remain the harmonisation of social and market regulations in the road transport sector, strengthening enforcement of the rules, and developing inspection and investigation bodies for rail and water transport.
Among the investments that Ukrainian hauliers may need to make in order to operate to European standards, Blanc cited the installation of second-generation smart tachographs, the purchase of Euro 6-compliant vehicles and compliance with drivers’ working time requirements. According to him, such costs could be substantial for small and medium-sized enterprises, particularly in the context of the war.
At the same time, the European Commission views such modernisation as an investment in Ukrainian businesses’ future access to the EU transport market and their long-term competitiveness.
Support for transport companies can be provided either directly to large Ukrainian enterprises or via banks. Ten of Ukraine’s largest banks are currently utilising risk-sharing mechanisms, which help to reduce credit risks, particularly for small businesses, enterprises in frontline regions and relocated companies.
The total portfolio under the risk-sharing mechanism already exceeds EUR6 billion. The EU plans to further scale up funding programmes for Ukrainian companies that are investing in bringing their operations into line with European standards.