38 billion a year and new suppliers: how Ukrzaliznytsia is rebuilding its procurement system
18 December 17:17
In 2025, Ukrzaliznytsia signed contracts for the supply of goods and services worth UAH 38.3 billion. Hundreds of new companies have entered the bidding process, and businesses are increasingly positive about the state monopoly’s procurement. This is reported by the website RAIL.insider, according to "Komersant Ukrainian".
At the same time, the carrier’s financial problems and corruption risks remain in focus.
What happened
As of the end of 2025, the state-owned company Ukrzaliznytsia concluded agreements for the supply of various products and services totaling UAH 38.3 billion. This was reported by the industry resource RAIL.insider following the conference “Supplier Day 2026: Iron Partnership”.
According to the company, more than 3,000 companies took part in the procurement, of which 2013 became actual suppliers. Almost 850 participants joined the bidding for the first time.
What was purchased the most
Ukrzaliznytsia spent the largest amounts of money on:
- oil and distillates,
- passenger railcars,
- electricity.
The company also purchased rails, lubricants, rolled metal, components for locomotives and rolling stock, as well as repair and maintenance services for railway transport.
Out of more than 10,000 announced tenders, 67.4% were successfully completed. The average level of competition was 1.89 bidders per procedure, which is considered moderate in the public sector.
What it means
The management of Ukrzaliznytsia speaks of a change in the attitude of business to the company’s procurement. According to a survey of market participants, 65% positively assessed the experience of cooperation with UZ.
This is an important signal for the state-owned carrier, which has been criticized for years for its secrecy, low competition, and corruption scandals in procurement.
Active procurement takes place amid the company’s difficult financial situation. In 2025, Ukrzaliznytsia’s freight traffic decreased, and passenger transportation remained unprofitable. The state has already allocated UAH 13 billion from the reserve fund to the company, and the budget provides for another UAH 16 billion next year.
At the same time, law enforcement agencies continue to investigate cases of abuse in procurement for UZ, ranging from paints and linoleum to diesel fuel.
“Ukrzaliznytsia is trying to combine two tasks: to attract more business to procurement and at the same time convince the government and international partners of the transparency of spending. It will become clear in 2026 whether the growth in procurement volumes and the number of suppliers will translate into long-term trust in the company.
