Both SE “USPA” monopoly and sanitary fee rates are unlawful

A Client, company rendering services in processing various types of waste, applied to Interlegal.

The Client had all the necessary resources to collect and process waste from vessels at the Ukrainian sea ports, including a license. However, it could not commence such activity due to monopoly on such services created by SE “USPA” at the level of a by-law.

Having analyzed the situation, Interlegal lawyers came to the following two key conclusions:

• on lawfulness of SE “USPA” monopoly in the market of accepting various types of waste from merchant ships;
• on lawfulness of sanitary fee rates, based whereon SE “USPA” formed the cost of this monopolized service.

Regarding the first conclusion, hereby we propose you to follow the link to our news, which describes how we launched the market with assistance of the State Regulatory Service of Ukraine. It should be noted that decision of the State Regulatory Service of Ukraine No. 32 was upheld by the Ministry of Economy of Ukraine.

Link to decision of the State Regulatory Service of Ukraine: https://www.drs.gov.ua/wp-content/uploads/2021/05/rishennya-32_na-sajt.docx

Interlegal is grateful to the State Regulatory Service of Ukraine for their professionalism and correct competence.

Meantime, it was obvious both for us and for the Client that it was not enough just to launch the market.

It is also necessary to bring pricing in this area to competitive rules, since in the launched market (as a general rule) there can be no state regulation of prices and tariffs.

With this regard, we decided to submit to court a claim on lawfulness of sanitary fee rates.

The lawsuit was filed against the Ministry of Infrastructure of Ukraine, with third parties involved: the Ukrainian Sea Ports Authority (SE “USPA”) and the State Regulatory Service of Ukraine.

In the framework of court proceedings, it was investigated, inter alia, that the services of receiving and disposal of waste from vessels could also be provided by private companies on an open competitive basis.

Interlegal team proved that the sanitary fee rates are unlawful.

The key objective has been successfully achieved: there cannot be state pricing regulation in the launched market.

Due to Interlegal teamwork, the Client will be able to freely carry out activities in handling third-party ship-generated waste without any unlawful interference from SE “USPA”, based exclusively and solely on an open competitive basis.

Pricing in waste receiving from merchant ships should similarly be formed on a competitive basis.

Engagement of the state represented by SE “USPA” or state institutions should consist only in the control over mandatory delivery of waste from vessels in order to prevent environmental pollution.

Let’s make the economy of Ukraine freer together!

Interlegal attorneys-at-law Nikita Kocherba and Dmytro Ochkolias, managed by associated partner Karyna Gorovaya, led the case.