Kherson Port Requests Revision of Concession Agreement Due to War-Related Destruction

The Ministry for Development of Communities and Territories is negotiating with the concessionaire of the Kherson Port to revise the contract due to losses caused by the war.

This is reported by Latifundist with reference to the “League”.

Thus, the Ministry for Development of Communities and Territories is negotiating with LLC “Kherson Port” to update the terms of the concession contract. The company states that due to the destruction caused by Russian aggression, the port has actually lost production capacity, which makes it impossible to carry out concession activities.

Among the options are a temporary suspension of the concession term, exemption from payments for the downtime period, and a review of investment obligations and an inventory of damaged property.

Deputy Minister Andriy Kashuba stated that the Ministry of Development and Communities supports the need to adapt the terms of the contract to new realities, but the approaches “must be balanced and comply with the Law of Ukraine “On Concession””.

At the end of October, Law No. 4510-ИХ “On Public-Private Partnership” will come into force, which allows amendments to existing contracts in the event of force majeure, including war. The document creates a legal basis for the resumption of port operations after the end of hostilities.

Earlier, USM reported that the Ministry of Development and the concessionaire of the Kherson Port are looking for joint solutions for its restoration.