Ukraine to Expand Trade at Sevastopol

KIEV, Ukraine -- Ukraine is considering three new terminal projects for its Crimean Black Sea port of Sevastopol to boost its international maritime trade.

A $70 million, 5-million-ton capacity breakbulk terminal is being proposed for construction in Dock Bay. A second potential construction project is a 32-acre kaolin terminal capable of handling up to 700,000 tons per annum for Kamyshovaiia Bay, while DonetskStal Metal Works plans a 37-acre coke terminal in the Kamyshovaya Bay.


Environmentalists have already registered opposition to all three projects. The Sevastapol city council after the public hearings on August 3 will make its final decision.

Sevastopol is a Ukrainian port city on the Crimean peninsula with a population of 328,600. The port is the home of the former Soviet Black Sea Fleet and Russia still maintains naval forces there under a 1997 agreement. Under the agreement the Russian naval facility is defined as being "located in Sevastopol," for which the Kremlin pays rent.

Following the collapse of Communism in 1991 the Russian Federation initially refused to recognize Ukrainian sovereignty over Sevastopol and the surrounding Crimean province, arguing that city was never practically integrated into the Ukrianian SSR because of its military base status. The issue was only resolved in 2004 by the bilateral "Peace and Friendship" treaty between the Russian Federation and Ukraine, which stated that Sevastopol belongs to Ukraine.

While both nations are concerned about providing security against terrorists for the rising volumes of Caspian oil exported via the Black Sea, Ukraine would like to expand Sevastopol's use away from being a purely military base, as it is one of the finest deepwater habors on the Black Sea.

Source: UPI