16 billion hryvnia for Ukrzaliznytsia. Where will the funds be allocated?
3 March 15:20
The government has allocated UAH 16 billion from the state budget reserve fund to finance the state order for domestic passenger rail transport in 2026. This is stated in a decree of the Cabinet of Ministers, according to "Komersant Ukrainian".
“Allocate 16 billion hryvnia to the Ministry of Community and Territorial Development to finance the state order for domestic passenger rail transport in 2026. The Ministry of Finance shall provide uniform quarterly financing of the specified expenditures on a non-repayable basis from the reserve fund of the state budget,” the order states.
The Ministry of Community and Territorial Development is instructed to:
- use the funds allocated under this order in accordance with the Procedure for the implementation of a pilot project on the introduction of a state order mechanism for domestic passenger rail transport;
- approve, within three days, in agreement with the Ministry of Finance and the Ministry of Economy, a list of expenses related to the implementation of the measures specified in the previous paragraph;
- submit a report on the use of funds allocated under this order to the Ministry of Economy, the Ministry of Finance, and the State Treasury Service by December 25, 2026.
The Ministry of Development shall use the funds in accordance with the Procedure for the implementation of a pilot project on the introduction of a state order mechanism for domestic passenger rail transport, approved by the resolution of February 18, 2026.
As reported, on February 20, the Cabinet of Ministers decided to launch a pilot mechanism for state procurement of long-distance domestic passenger transportation. This involves a gradual transition to the European PSO (Public Service Obligation) model, whereby the state continuously compensates the carrier for the difference between the actual cost of transportation and the current socially accessible tariffs.
According to the results of 2025, 161.3 million tons of cargo were transported by rail in Ukraine, which is 13.6 million, or 7.8% less than in 2024.
Earlier, Ukrzaliznytsia temporarily suspended coupon payments on Eurobonds to maintain liquidity. The company’s priorities are the uninterrupted operation of rail transport and the payment of salaries to railway workers.
