Business calls to support Ukrzaliznytsia: EBA asks the state for UAH 8 billion
17 August 18:12
The European Business Association calls on MPs to support the provisions of Draft Law #13439-3, which provides for an increase in the size of the State Budget Reserve Fund. The additional funds may be used by the Cabinet of Ministers to take urgent measures to overcome military aggression, including restoring transport links after the escalating hostile attacks and supporting the continuous operation and liquidity of the Ukrainian railroad operator.
This was reported by "Komersant Ukrainian" with reference to the EBA.
According to the EBA, in the near future, the second reading of the draft law No. 13439-3 of July 14, 2025 “On Amendments to the Law of Ukraine “On the State Budget of Ukraine for 2025″ on Financial Support of the Security and Defense Sector and Addressing Priority Issues” is scheduled to be considered, which, among other things, contains provisions for increasing the Reserve Fund against the background of growing threats to the country’s critical infrastructure.
This decision will allow the Government to allocate funds for urgent needs in sectors critical to the functioning of the Ukrainian economy. Among other things, this will allow to provide up to UAH 8 billion of financial support for Ukrzaliznytsia JSC, which, under heavy enemy shelling, ensures the uninterrupted functioning of the railway transportation system for the needs of the military, economy and civilians.
In 2025, Ukrzaliznytsia’s losses from passenger transportation are projected to reach UAH 22 billion, as tariffs for the population are fixed for the period of martial law and costs are constantly growing. Previously, these losses were covered by cross-subsidization from the revenues generated by freight transportation. Funds that should have been used to develop infrastructure and improve logistics services were forced to cover the losses of the passenger segment. However, with a significant drop in cargo volumes due to the occupation and the destruction of industry, the sources for such cross-subsidization have been exhausted.
Cargo owners can no longer withstand the additional burden, and their competitiveness has deteriorated critically, particularly in a situation where many businesses are in a difficult position due to the impact of a full-scale war. In addition, the business community considers this practice economically unjustified and contrary to the European principles of transport financing.
Earlier, the EBA made a similar statement, which is particularly relevant in connection with the carrier’s plans to index the cost of tariffs for shippers.
In view of this, the European Business Association calls for support for Draft Law #13439-3, as the adoption of this provision will help maintain the country’s defense capability, economic activity, and the fulfillment of important social functions of the state, without critically exacerbating problems for the economy.
