The Association “Ukrainian Agribusiness Club” experts’ team has found that agro entities contribute to the state budget more than 1/3 of all excises on fuel. Along with, rural roads’ net condition is not criticizable in the line with inefficient maintenance. This is a result of long term incompetent financial management in the government.

Considering official information from Ukraine Ministry of Infrastructure, 97% of roads and high ways require capital rebuilding and 40% of them – capital reconstruction. Along with, if urban infrastructure maintained at least at certain minimum level, rural net of roads was not serviced even at the level of minimally required quality by Ukrainian standards during critical period of exploitation. Such unbalanced management has caused social inequality at the national level which has demolished access of most citizens living in the rural area to social infrastructure.

Agro industry indirectly transfers to the State Automobile Roads Agency more than 1/3 of required budget via excise and other duties on fuel. Thus, in 2015 amount of transferred fuel taxes accounted in 7.7 B UAH. During 2011-2015 the government has accumulated 67 B UAH of fuel taxes from the market with 46% of agro entities’ share (30.9 B UAH or 1.9 B USD due to annual average currency exchange rates). Besides, the government receives duty on goods related to the market of logistics and automobiles, valued at 10.2 B UAH during period from 2011 to 2015. Considering all the facts above, the government during 2011-2015 had balanced financial resources for capital reconstruction of 16 k km of roads in the rural area with the EBRD and the IFC standards and 10 years of guaranty period, 5.3 k km would be paid by agro industry.

In the perspective of ten years, the government is able to finance 33.7 k km of roads in the rural area, including lightening and road fences. The overall length of rural roads in Ukraine is about 70 k km. Thus, the period of capital reconstruction for all the roads in the rural area is about 20 years with no loans.

“Unacceptable condition of rural roads requires immediate solution through efficient management of finances received due to fuel taxes and duties by the government on different administrative levels directing that money to rural area development, in particular, reconstruction of roads. The Association “UCAB” has positive expectations about new governmental initiatives on founding independent fund for roads’ network development with strictly directed resources.” – UCAB General Director, Taras Vysotskyi has said.