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  • 2022 December 1 09:39

    Draft law on transportation of Russian cargo by domestic ship owners can be temporarily withdrawn from consideration

    The bill is criticized by the market players

    The draft amendments into the Merchant Shipping Code of the Russian Federation which foresee a new article “Specifics of cargo transportation to and from the seaports of the Russian Federation”, may be revised or temporarily withdrawn from consideration. According to information obtained by PortNews IAA, Rifat Shaikhutdinov, Deputy Chairman of the Group, First Deputy Chairman of the State Dumas’ Transport Committee, announced that during an expanded meeting of the inter-factional working group "Legislative Support of Import Substitution and Creation of Markets for Domestic Business".

    “We are preparing (with RF Ministry of Transport - Ed.) a fairly detailed note to the Government with a request to either significantly change this bill or withdraw it, because its text proved not comply with the President's instructions (on increasing the volume of transportation by the Russian fleet - Ed.),” said the deputy.

    The text of the bill has not yet been submitted to the State Duma. It is being discussed only by ad hoc executive authorities and industry associations. 

    Sergey Sidorov, Vice-president, Communication with Regions, Land and Property Relations, FESCO, who attended the meeting, expressed the opinion that the draft law contains vague wording and could lead to negative consequences for the country's economy. 

    Besides, the representative of FESCO noted that most of the Russian exports are currently carried by foreign-flagged vessels. “The adoption of this bill may result in a complete stop of domestic cargo shipments from Russian ports,” believes Sergey Sidorov. Moreover, the adoption of the bill may lead to difficulties in the transport of imported goods from other countries to Russia by foreign vessels.

    FESCO also believes that the mechanism of fixing freight rates foreseen by the bill leads to a restriction of competition.

    It should be noted that negative reviews to the draft law were given during the public discussion of the bill published on the Federal portal for draft regulations by Kamchatka Shipping Company, FESCO, LUKOIL, EuroChem, Association of Primorye Fisheries, etc.

    Related link: 

    Amendments into Russia’s Merchant Shipping Code relate to transportation of Russian cargo by domestic ship owners >>>>


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