Infrastructure Minister Andriy Pivovarsky, in office since December 2014, seems like he’s had enough.
In an interview with the Kyiv Post at his office at the Ministry of Infrastructure, Pivovarsky bemoaned parliament’s failure to pass much-needed reform legislation.
He also is having doubts about his decision to withdraw his December resignation.
Much of Pivovarsky’s work at the ministry has focused on opening up access to key markets in the Middle East, Turkey and further afield. Improving Ukraine’s infrastructure — decrepit and starved of investment in many places – would increase the nation’s ability to export grain, metals and manufactured goods to these key new markets.
A key minister in charge of the nation’s railways, air travel, ports, and postal system, Pivovarsky can tout achievements such as deregulating river transport and attracting investment to the country’s ports.
But without more help from parliament, his ideas for bringing investment into the nation’s sagging infrastructure are stagnating. “Honestly, I’m frustrated,” Pivovarsky said. “I don’t know what they want any more.”
Pyvovarsky will speak at the Kyiv Post Capturing New Markets Conference at the Hilton Kyiv on March 29.
Foreign trade
Pivovarsky said that Ukraine is making headway in reaching free-trade agreements with Turkey and Israel.
“Given the relationship with the Russians, they’re excited about a free trade agreement with Ukraine,” he said of Turkey, noting that Deputy Minister of Economic Development Nataliya Mykolska is currently in Turkey to help negotiate the deal.
“It’s in the making, it’s baking,” he added. “And we’ll get there this year.”
Pivovarsky also said that Turkey could serve as a future point on Ukraine’s much vaunted “silk road” trade route, by which it ships goods to east and southeast Asia without traversing Russia.
A Turkish ship Akar Pazar arrives to Ochakiv Port in Mykolayiv Oblast on Sept. 23. (UNIAN)
Roadblocks
Pivovarsky said river transport plays an outsized role in exports to Middle Eastern nations due to its relatively low cost and accessibility to Ukraine’s main ports. But the roads near the ports, the minister said, are “horrible” due to vehicles being overloaded with agricultural commodities, which “kills the roads.”
He added that the Infrastructure Ministry had submitted legislation for a “dedicated road fund,” but that it had stalled in parliament.
“They tried to pass it once, and failed,” he said.
“Surprise!” he added sarcastically.
Profit versus investment
Pivovarsky lauded his ministry’s accomplishments in deregulating river transportation, getting rid of numerous local corrupt officials who demanded bribes for transit.
“As a result of deregulation, we managed to improve efficiency significantly,” he said.
But he complained that the grain traders who actually ship commodities from Ukraine to the Middle East are failing to invest in Ukrainian infrastructure enough to keep the momentum of modernization going.
“Look guys, I saved you billions of hryvnias last year because you don’t need to spend it on corrupt individuals, and you are always just complaining that the quality of the existing rolling stock in Ukrzalyznitsiya is not satisfactory,” Pivovarsky said, talking of local exporters and plans to upgrade Ukrainian railways’ aging railcars and wagons.
The minister added that the country needs to “somehow generate cash” to buy new railcars in order to improve export efficiency. But, he said, exporters are often unwilling to invest further.
“They’re like, ‘yeah, we understand. But we don’t want to lose profits, and yadayadayada. It’s an interesting game that you’re playing, and we’re grateful for what you did last year, but we don’t care anymore because now it’s about our profits,’” Pivovarsky said.
When asked about recent reports in the Ukrainian press that Saudi Arabia intended to invest up to $10 billion in Ukrainian agriculture and export infrastructure, Pivovarsky said that he had heard nothing of the kind.
“That would be cool, though,” he remarked.
Stick to the law
Pivovarsky went on to say that during his 14-month tenure as minister, he and his team had prepared a number of legislative packages aimed at streamlining export processes in order to allow Ukraine to take advantage of markets in the Near East.
“We need to allow privatization of the state-owned stevedoring companies in Ukrainian ports,” he said, adding that parliament has not yet allowed the process to go forward.
A separate law that would streamline internal water transport, Pivovarsky said, was submitted to parliament, but has not yet been passed, despite four attempts to do so.
“Pretty much all we need to do is adopt a number of laws and stick to them,” he said.
No improvements
But, the minister said, the chances of parliament acting are slimmer than ever.
Pivovarsky complained that since reversing his resignation in the aftermath of former Economy Minister’s Aivaras Abromavicius quitting in February, parliamentarians have done nothing to improve the situation.
“They all remember that I decided to come back, but there was also a list of conditions,” he said. “They always say, ‘oh he came back.’ But there’s a list of conditions. Have you fulfilled any of them?”
He answered his own question: “No.”
