Ukrzaliznytsia’s survival plan: Leshchenko names three steps to save the company
5 November 13:38
“Ukrzaliznytsia sees three main ways to improve its financial situation. This was stated by Serhiy Leshchenko, a member of the Supervisory Board of Ukrzaliznytsia, during a speech in the Verkhovna Rada, "Komersant Ukrainian" reports
During his report to the Verkhovna Rada, he emphasized that all the resources of Ukrzaliznytsia have been exhausted, and the company’s financial situation is becoming critical. If the situation does not change, the Ukrainian railroad may completely stop.
He said that in the first nine months of 2025, the company’s net losses amounted to UAH 7.19 billion, and without government support, the situation could become critical.
Cargo does not save passenger losses
Previously, losses from passenger transportation were covered by freight transportation, but after the outbreak of a full-scale war, this model stopped working. The shutdown of mines, metallurgical and ore processing plants, especially in Donetsk region, has significantly reduced the volume of cargo.
“We have lost an entire industry in Donbas. The last mine, Belozerskaya, has shut down. We won’t survive without the government’s help,” Leshchenko added.
Three steps to save UZ
The Supervisory Board member suggested three ways to stabilize the company’s financial condition:
- Internal optimization and scrap sales
The first step is the internal work of the company itself. In particular, it is the sale of scrap metal that has accumulated at the company as a result of rolling stock renewal and dismantling of old infrastructure elements.
It is estimated that the sale of scrap metal could bring the company about UAH 10 billion, which will be an important source to cover part of the losses.
- State compensation for passenger transportation
The second area is direct funding from the state budget. According to Leshchenko, Ukrzaliznytsia expects to receive UAH 16 billion in compensation for unprofitable passenger transportation.
These funds should cover the difference between the actual cost of transportation and the tariffs that remain socially acceptable to the population.
- Gradual indexation of freight tariffs
The third tool is the indexation of freight transportation tariffs.
The company’s management proposes to implement it in two stages to avoid a sharp burden on business:
- from January 1 – by 27.5%,
- on July 1 – by another 11%.
According to preliminary estimates, this change could generate an additional UAH 22 billion in revenue over the course of the year.
At the same time, Leshchenko emphasized that the decision will be made taking into account the state of the industry so as not to “create shocks for business.”
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Raising prices for premium tickets
Separately, the company plans to expand dynamic pricing for passenger transportation.
This means raising the price of tickets in the second and first class of Intercity trains, where demand is traditionally stable even during the high season.
This approach will allow UZ to increase revenues without raising fares in the economy segment.
What it means for passengers and businesses
For passengers, the changes will be felt in the near future only in the premium ticket segment, while social routes will remain unchanged.
For the industry, the key issue will be to adapt to the new fares, which are planned to be introduced gradually.
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