Road-building industry to receive $1.66 billion of financing in 2018 – Infrastructure Minister

Source : 112 Ukraine

The minister outlined the major changes to driving regulations coming into effect on 1 January
12:15, 2 January 2018

Министерство инфраструктуры

Ukraine’s road-building industry will receive around $1.66 billion of financing through the start of operation of the State road fund and other sources, Minister of Infrastructure Volodymyr Omelyan said this, Interfax-Ukraine reports.

Related: Ukraine to start building of toll roads in 2019

“The road fund will begin its operation from 1 January. For the first time, Ukraine’s road-building industry will receive financing guaranteed by the government. This year, it is almost $1.17 billion plus separate extra funding of a number of key highways – over $495 million”, - the minister explained on his Facebook page.

Related: Toll roads in Ukraine: Where will they appear and how much will they cost?

Also, the minister reminded that beginning on 1 January Ukravtodor will be in charge of only 50 thousand kilometers of the country’s roads, while the remaining 120 thousand kilometers will be managed by regional authorities with guaranteed financing out of the road fund to the tune of 35% of its receipts.

Related: Groysman: 97% of Ukrainian roads are in terrible condition

“From now on, every citizen will have the right to and should demand quality road construction and maintenance from local authorities, instead of complaining about Kyiv’s actions”, - Omelyan remarked, also adding that from 1 January 2018, the maximum speed allowed in towns and urban areas will be restricted to 50 km/h.

 Furthermore, the minister also reminded that penalties will become significantly harsher from 1 January. The fine for driving a vehicle without a license will increase 20-fold – to $360, while another such violation will cause a fine amounting to $1,442. Anyone who is stripped of a right to drive a vehicle, in case of breaking the law, will have to pay a fine of $721, whereas those who violate the law again within a year will have to pay $1,442.

Related: Groysman: Defense sector, roads and decentralization of power will be priorities of state budget-2017

From now on, a fine for speeding within towns and urban areas will be punished with a fine of $120, which has been raised from $18.

Any driver who leaves the scene of an accident will now have to pay $120, as opposed to $8 previously. Also, such violation may result in the driver’s loss of the right to drive a vehicle for a period of up to six months.

Related: Ukravtodor plans to build Ukraine-Hungary highway

“And finally, from 1 January, electric cars in Ukraine will become among the cheapest in Europe. Purchases of electric cars have been exempt from VAT and excise duties. We expect to start seeing cars with Ukrainian license plates in all of the EU member states. I am confident that Ukrainians will favor this eco-friendly means of transportation with close to zero operational costs. For instance, an owner of an electric Nissan Leaf will be able to save around $1,766 per year just on fuel alone. This is not even to mention the fact that the price of inspection for electric cars is also significantly lower.

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