Ukrainian Danube Shipping calls for introducing 30% discount for agricultural products shipping to Izmail port

MOSCOW. July 23 (Interfax) - The Ukrainian Danube Shipping Company (UDP) urges the government to introduce a 30% discount for shipping agricultural products by rail to the port of Izmail in the Odessa region, Ukrainian media quoted its press service as saying on social media.

UDP transferred 7.5 euros from each tonne of cargo to the state budget in 2022-2024, the statement said.

"If the state is interested in receiving taxes for the shipping of agricultural products, it is needed to promote the loading of the state-owned fleet," UDP said and suggested amending government's Resolution No. 581 and introducing a discount for rail transportation to Izmail.

The shortfall in taxes, which are transferred to the state budget by Ukrainian Railways, will be covered by higher tax revenues from river transportation, UDP said.

The establishment of a UDP supervisory board, which will open access to international financing for fleet upgrades, is also among the proposals. The new fleet will provide a much higher profitability of shipments.

Furthermore, it is needed to agree on changes to the financial plan so that the shipping company would be able to get rid of tens of thousands of tonnes of scrap.

"This is millions of hryvni in taxes plus funds for modernization, that is, the creation of a state-of-the-art much less costly fleet," UDP said.