MINISTRY OF TRANSPORT GETTING TOUGH

An audit of the Black Sea Steamship Company (Ukr. abbr. ChMP) estimates its foreign debts at $95 million and internal ones at UAH 220 million, Minister of Transport Leonid Kostiuchenko said at a briefing yesterday.

The Ministry of Transport proposes the Cabinet to write off ChMP debts in terms of penalties currently totaling 60% of internal arrears. Mr. Kostiuchenko further informed that the Ministry is negotiating restructuring ChMP debts with foreign creditors, adding that the Ministry has succeeded in redeeming $15 million worth of foreign debts over the past 6-7 months. In addition, the back wages portfolio has thinned by UAH 11 million, leaving some UAH 10 million still to be paid.

The Cabinet gave ChMP until the end of 1999 to pay under tax and purposeful funds’ liabilities, and unblocked company bank accounts. In 1999, ChMP arrears on foreign contracts and credits amounted to some $122 million and 15 company vessels were arrested at foreign ports; 22 were sold to foreign companies on account of debts.

The Ministry of Transport also plans during the month to ban flights on the part of companies that do not have their own aircraft or which use leased planes, reports Interfax Ukraine. By doing so, Mr. Kostiuchenko pointed out, approximately 50% of Ukraine’s 106 airlines will be revoked air carriage licenses. This is aimed, first and foremost, at securing flight safety, effective regulation of air transportation, and transparent business, stressed the Minister, adding that the above measures are in compliance with the President’s order and that Ukraine, Belarus, and Moldova are preparing an agreement to provide favorable conditions for cargo transit via Ukraine in the “South-North” direction.