Co-founder of Nova Poshta calls for privatization of roads in Ukraine
1 March 07:18
Vladimir Poperechnyuk, co-founder of Nova Poshta, has made another public statement on state economic policy. This time, the entrepreneur criticized the long-standing model of road infrastructure financing and proposed its complete privatization,
This was reported by "Komersant Ukrainian", citing his post on Facebook.
According to him, Ukraine has spent tens of billions of dollars on roads since independence, but has not achieved the expected quality.
“In almost 35 years of independence, about $40 billion has been spent on roads, but there are still no quality roads,” he said.
Popereshnyuk believes that if road infrastructure were privately owned, the efficiency of fund use would be much higher:
“If the roads belonged to private companies, all cities in Ukraine would be connected by high-quality highways, and neither snow, heat, nor cold would prevent drivers from receiving a high level of road service.”
The entrepreneur insists that the ability to work freely and make a profit is a key condition for the development of any industry.
In his opinion, roads could become a full-fledged market with competition, investment, and user-oriented services.
“Roads would become a place of profit, investment, and innovation. We would finally become customers of road services, rather than a burden on the ‘road surface’ that constantly destroys it,” the businessman believes.
He also acknowledges that a private model would mean the introduction of toll roads, but he is convinced that Ukrainians are already paying for them through taxes — without a direct link between the quality of the service and its payment.
Popereshnyuk adds that the current financing model has a double negative effect on the economy.
“Moreover, taxation for roads also slows down economic development, so we lose twice: first, due to tax pressure on the economy, and second, due to terrible roads,” he added.
Separately, the entrepreneur emphasizes the shortage of budget resources and considers privatization as a tool for transforming expenditures into potential state revenues.
“Therefore, I believe that the critical time has finally come to privatize roads and let this market run free. Competition, investment, and innovation will quickly create the best roads in the world,” he said.
As a reminder, JSC “DAC “Automobile Roads of Ukraine” is asking international partners for help with equipment for the construction and operation of roads that they do not need and that has already been decommissioned. The company says that such assistance is especially needed by those who are directly close to the war zone and are at daily risk of air and missile strikes by Russian aggressors.
Recently, a Russian missile destroyed the production base of one of the regional road administrations.
