17:25 03.04.2019

Nova Poshta considers new draft bill on postal services to be balanced

3 min read
Nova Poshta considers new draft bill on postal services to be balanced

The Nova Poshta group of companies considers the new version of the draft law "On Postal Communication," promulgated by Ukraine's Infrastructure Ministry to be balanced and taking into account the interests of both the state operator and the market.

Nova Poshta-Center Legal Affairs Director Inna Khomych told the Kyiv-based Interfax-Ukraine news agency that the wording of the concept of a universal service, which in the previous version of the bill allowed the designated operator to monopolize the market, has been changed.

In the amended edition of the draft law, the universal postal services included: simple mail items registered and with a declared value of a letter up to 2 kg; parcels without a declared value of up to 10 kg and dispatches for the blind up to 7 kg.

"This edition of the bill is balanced. It takes into account the interests of stakeholders, the market, the regulator, the state operator and, most importantly, customers who will have the opportunity to choose the best quality and the best price," she said.

According to Khomych, it is also important for the company that this edition of the draft law does not provide for the broad powers of the regulator to regulate the market and supervise the operators, as previously proposed.

"The authors of the draft law also refused from unreasonable fines for operators. The authorities of the regulator are reduced to keeping the register of operators, approving prices for universal services, and supervising the quality of universal services," she said

At the same time, Nova Poshta said certain norms of the draft law still need to be improvement, including regulating the work of courier delivery.

"But this edition is definitely better than the previous one. We hope that the new law on postal communication will be unequivocal, understandable, simple and meet all the requirements of the Ukrainian and European legislation," said Nova Poshta-Center legal director.

At the same time, Ukrposhta CEO Igor Smelyansky said the new version of the bill changes absolutely nothing for private players.

"Both carried parcels, calling them 'express shipments,' just as they did not obey any regulation, and they will continue to do so. Only Ukrposhta will be regulated," he said.

According to the published text of the draft law, in its new version it is proposed to allow unsafe items to be sent in parcels if their dispatch is permitted by the rules of the Universal Postal Union.

At the same time, as before, designated operators, who are obliged to provide universal services throughout the country, are determined by the Ministry of Infrastructure in the manner prescribed by the Cabinet of Ministers.

As reported, the Ministry of Infrastructure proposed to transfer to the universal postal services the shipment of mailings weighing up to 2 kg, including those registered and with declared value, and parcels weighing up to 10 kg. Market participants have repeatedly expressed concern about the possibility of Ukrposhta monopolizing the mail market.

The Nova Poshta group of companies in 2018 delivered 174 million parcels, almost 20% more than in 2017. At the same time, in 2019 the company also plans to achieve a 20% increase in the number of served items.

Founded in 2001, Nova Poshta group of companies is a leader in the express delivery market in Ukraine. The company's network consists of almost 3,000 branches throughout the country.

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