The road transport agreement between the EU and Ukraine has been extended
On June 20, 2024, the EU and Ukraine decided to extend the road transport agreement. However, several important provisions were introduced to the agreement which were crucial from the point of view of European carriers, including carriers from Poland.
What does the road transport agreement cover?
The road transport agreement between the European and Ukrainian sides was first concluded on June 29, 2022, shortly after Russia’s invasion of Ukraine. Its aim was primarily to help Ukraine gain access to world markets by facilitating transit through EU countries and further developing its connections with the Community market.
The Agreement is an important element of the action plan adopted by the EU for solidarity corridors between the EU and Ukraine for the export of agricultural products from Ukraine and bilateral trade between Ukraine and the EU. The plan is intended to support the economy and economic recovery in Ukraine, as well as to work towards stabilizing global food markets.
The scope of the agreement includes additional transit and cargo transportation rights for entities established in the European Union or Ukraine and concerns transit and road transportation of goods for remuneration. The agreement provides that road transport operators can perform certain types of transportation without the need for a permit.
What are the benefits of the agreement?
According to analyses by European bodies, since the conclusion of the Agreement temporarily facilitating the transport of goods by road between the EU and Ukraine, the volume of Ukrainian road exports to EU countries has increased by as much as two thirds, and its value – by one third.
Ukraine’s import of goods from the EU also increased significantly, and its value reached EUR 700 million per month – almost 3 times more than the monthly value of Ukrainian exports (approx. EUR 250 million). The agreement facilitated the transport of necessary goods to Ukraine, such as fuel and humanitarian aid, as well as the export of Ukrainian products (including grain, ores and steel).
Problems of Polish carriers
The Road Transport Agreement has created new prospects for the Ukrainian transport industry, thus making it a strong competitor for EU carriers. It has opened the door for Ukrainian carriers to the European transport market without the requirements or obligations that European carriers must meet. This led to a wave of strikes, also in Poland. Polish carriers raised a number of concerns about the terms of the agreement and how its provisions were actually implemented. They also pointed to abuses and unfair competition from our eastern neighbors. More information on this topic can be found in our February post.
What changes have been made to the agreement?
The updated and extended (until 30 June 2025, with the possibility of its automatic extension for another six months) Road Transport Agreement was finally signed in Brussels by Commissioner Adina Vălean and Serhiy Derkach, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine. As emphasized by the Polish Ministry of Infrastructure, the content of the Agreement approved by the EU Council has been able to incorporate most of the postulates that the Polish side developed with carriers. Among the added provisions, the following should be mentioned:
– the requirement for road carriers to have documents confirming their authorisation to carry out international transport and their compliance with the Agreement;
– requirement to have documents confirming that unladen trips are directly related to a transit or bilateral operation, in accordance with the provisions of the Agreement;
– increasing control over road carriers’ compliance with the obligations arising from the Agreement, in particular in the area of counteracting fraud, forgery of drivers’ documents and violations of road safety regulations. Their violation may result in the loss of the right to provide transport services specified in the Agreement;
– introduction of a safeguard clause allowing the suspension of the Agreement in specific geographical areas if the road transport market in that area experiences serious disruptions caused by the Agreement.
The Ministry of Infrastructure announces that it will continue to monitor and closely analyse the situation on the road transport market and, if necessary, will not hesitate to use the protective instruments introduced by the agreement.
SENT system in the fight against unfair competition
On July 1, 2024, an amendment to the regulations came into force in Poland, allowing for tighter control over unfair competition from the eastern border. According to its provisions, all foreign trucks performing international transport to or from Poland, of a nature requiring a single permit, a multiple permit (CEMT/ECMT) or an exception to a permit based on an international agreement, are subject to mandatory registration in the SENT system (Electronic Transport Supervision System). Penalties apply for violating the new regulations.