21.10.2015

The loss of income due to cargo blockade

Complainee: State Administration of the Railway Transport (Ukrzaliznutsja)
Complaint in Brief: On 16 June 2015, the Complainant, enterprise specializing in railway cargo transportation, turned to BOC. The complaint was about the moratorium for the service of any railway cargoes (empty and loaded with goods) between Crimea and mainland Ukraine. Because of the abovementioned moratorium of Ukrzaliznytsia over 1000 units of boxcars of private ownership were blocked in Crimea, with 523 units belonging to the Complainant. The substantial delay in cargo receipt led to financial losses of the Complainant and Ukrainian companies that expected the cargo.
Actions taken: On 21 June 2015, BOC addressed Ukrzaliznytsia with an official recommendation  to cancel the moratorium for the railway service of any freight between Crimea and mainland Ukraine and to execute all actions necessary to return the loaded and empty boxcars to their legal owners. On 25 June 2015, BOC received an official statement from Ukrzaliznytsia that all the empty boxcars could cross the Ukrainian border from the Crimea side. However, the BOC was not completely satisfied with such outcome and continued the dialogue with the officials of Ukrzaliznytsia. Our experts insisted on returning of all boxcars to the territory of Ukraine, both empty and loaded.  
Result achieved: The issue of the moratorium for the railway service with Crimea was included to the BOC’s first quarterly report, which was then presented to the Cabinet of Ministers of Ukraine. On 25 August 2015, the Prime Minister of Ukraine assigned the Minister of Infrastructure with the task to resolve the issue of moving the goods and boxcars from the temporary uncontrolled territory and report to the Prime Minister and the BOC on the outcome.

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