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Ukrzaliznytsia may switch to a European financing model: what will change?

Ukrzaliznytsia may switch to a European financing model: what will change?

Фото: УЗ

“Ukrzaliznytsia” may switch to a European model of financing passenger transportation in Ukraine. This should help stabilize the company’s financial condition and compensate for the difference between tariffs and the actual cost of transportation.

This was reported by the Ministry of Community and Territorial Development of Ukraine.

Deputy Minister of Community and Territorial Development Oleksiy Balesta, during a workshop dedicated to discussing the situation in the railway sector, presented possible short-term and long-term measures to develop the industry and improve the financial condition of Ukrzaliznytsia.

“One of the important steps to support the financial stability of Ukrzaliznytsia should be the introduction of a state order for passenger transportation within the country,” said Oleksiy Balesta.

According to him, the model involves financing passenger transportation from budget funds. It will allow compensating for the difference between the actual cost of transportation and current tariffs.

“This will be the first transitional step towards a full-fledged PSO system in accordance with European standards,” said Oleksiy Balesta.

The Deputy Minister reported that a corresponding decision may be presented as early as the 1st quarter of 2026. The introduction of such a mechanism, according to him, should help stabilize the company’s financial situation and maintain the availability of passenger transportation.

It is also expected that the introduction of public procurement will create a transparent basis for the transition to a European model of procurement of socially important services in the field of rail transportation.

We remind you that the pilot project with Internet access on Ukrzaliznytsia trains is being expanded to long-distance services . In test mode, Wi-Fi has been launched on the “Hutsulshchyna” train No. 95/96 on the Kyiv-Rakhiv route.

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