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Infrastructure Ministry to create specialized fund for development of aviation, railway infrastructure

KYIV. Nov 25 (Interfax-Ukraine) – The Ministry of Infrastructure of Ukraine intends to create a specialized fund for the development of aviation and railway infrastructure, Minister Oleksandr Kubrakov has said.

"Regarding the stimulation of the aviation industry, it is important to emphasize two things. This is the creation of a separate specialized fund for the development of aviation and railway infrastructure. We plan to do this in the budget for 2022. The second is the introduction in Ukraine of the ‘public service obligation’ mechanism for critical routes for certain categories of the population," Kubrakov said at the Great Construction: Aviation. Tourism forum on Thursday.

According to him, in particular, vaccinated citizens of Ukraine will be able to use the "public service obligation" mechanism within the aid provided to them from the state in the amount of UAH 1,000.

In addition, as part of stimulating the aviation industry development, compromise proposals are being considered to reduce the VAT rate on domestic air transportation from 20% to 7%, to expand the construction of airports in eastern Ukraine and Zakarpattia, and to support the domestic transportation market.