The Parliamentary Committee of the Verkhovna Rada summons the management of Ukrzaliznytsia, the Supervisory Board, and government officials to report. The creation of a PIC is not ruled out
7 November 15:08
EXCLUSIVE
The Verkhovna Rada Committee on Transport and Infrastructure has decided to invite Ukrzaliznytsia’s management, members of the company’s Supervisory Board and government representatives to a meeting to report on the company’s financial condition. MP Mykola Velychkovych, a member of the committee, told Kommersant in a commentary.
According to him, this initiative is related to a significant deterioration in the financial results of Ukrzaliznytsia and ambiguous statements by representatives of the Supervisory Board, in particular its deputy Serhiy Leshchenko, who recognized the critical state of the state-owned strategic enterprise during his speech in parliament.
“The Committee decided to invite the management of the UZ Board, members of the Supervisory Board and representatives of the Ministry of Transport Policy,” said Velychkovych.
The MP also did not rule out that the results of the hearing could lead to the creation of a temporary investigative commission (TIC) of the parliament to investigate the reasons for bringing the company to unprofitability.
“First, we need to hear the responsible persons and then make a decision. Perhaps, it is not even the PIC but the law enforcement agencies that should make an assessment,” he said.
Velychkovych reminded that in 2018, Ukrzaliznytsia was profitable, with a result of about UAH 200 million, while in 2024 the company recorded more than UAH 16 billion in losses.
“Yes, there are objective reasons related to the war, but this is mostly the result of unprofessional actions of the management and the Supervisory Board,” the MP emphasized.
Financial vacuum and management paralysis
MP Oksana Savchuk emphasized that the problem starts with the basic thing – the lack of a financial plan.
“We need to adopt the financial plan of UZ for 2025 and 2026. Because the lack of a financial plan causes inefficiency of middle managers who cannot carry out the first works or procurement in time,” the politician pointed out.
In addition, according to her, the company has been left without a stable management core.
Oleksandr Kalenkov, president of Ukrmetallurgprom, is even more critical of UZ ‘ s performance:
“For as long as we have known Ukrzaliznytsia, it has been a legendary corrupt company that burns through a lot of money. This year, Ukrzaliznytsia is expected to receive about 7 billion hryvnias from passenger transportation, while spending more than 30 billion. This is not a business,” he said.
The situation is critical
“If the state does not intervene, we may lose not only a large part of the business that UZ uses, but also Ukrzaliznytsia itself,” warns Kalenkov.
He points out that the main shareholder of the company is the state represented by the Cabinet of Ministers, which makes personnel and financial decisions and approves the financial plan.
“It has all the powers to restore order,” the expert adds.
Serhiy Leshchenko ( who remained deputy chairman of the Supervisory Board of UZ for the second term in a row – ed.)
“Save the railroad – we will all need it. The internal reserves to compensate for losses from passenger transportation have been exhausted: either we all act together or we will lose the company,” he said.
Who is currently in charge of Ukrzaliznytsia?
Chairman of the Board:
Alexander Pertsovsky
Board members:
- Mykola Ivaninov (finance)
- Lidia Hrytsenko (personnel)
- Józef Tuley (infrastructure)
- Yevhen Shramko (repairs and production)
- Elżbieta Ewa Bieńkowska (Poland) – former Minister of Infrastructure of Poland and European Commissioner;
- Gepard Hafer (Germany) – logistics expert, worked at Deutsche Bahn, elected as the SB chairman for the second time in a row;
- Maksym Mokliak, former acting head of the State Fiscal Service (2015);
- Anatoliy Amelin – entrepreneur, co-founder of the Ukrainian Institute for the Future;
- David Lomdzharia (Georgia) – Chairman of the Supervisory Board of Ukroboronprom;
- Serhiy Leshchenko, former MP, journalist, Deputy Chairman of the Verkhovna Rada;
- Oleksandr Kamyshyn, former Chairman of the Board of Ukrzaliznytsia, former Minister of Strategic Industries, who has been a member of the UZ management team for over four years.
Last September, industrialists called on the government to conduct an international audit of the effectiveness of Ukrzaliznytsia’s management, which has not changed for years.
Prime Minister Denys Shmyhal did not make such a decision then.
It is not yet known whether the new Prime Minister Yulia Svyrydenko will demand inspections and audits.
