Ukrzaliznytsia in dialogue with Cabinet on implementation of systematic program for company’s financial support

 JSC Ukrzaliznytsia (UZ) is in dialogue with the government on the possibilities of introducing a systematic program of financial support for the company, Volodymyr Zhmak, head of Ukrzaliznytsia (UZ), said in an interview with Interfax-Ukraine.

"We are working with them [government representatives] to ensure that this does not become a one-time action [the law on the state budget for 2021 provides UAH 4 billion for the development of rolling stock and infrastructure], but turned into a systematic program to support the national railway carrier, as practiced in almost all countries," he said.

Zhmak, in particular, noted that since UZ is moving towards unbundling, that is, division into verticals, the situation cannot remain the same as now, when passenger transportation, production, repairs, and infrastructure are subsidized due to freight traffic.

"When our four verticals become independent, it will be simply impossible to make passenger transportation profitable without government assistance," he stressed.

The head of Ukrzaliznytsia also noted that the company is looking forward to the adoption of a new law on railway transport, since it will allow regulating two main things – the private traction regime, that is, the admission of private locomotives to the UZ infrastructure, and the launch of a system of public contracts for passenger transportation.

Speaking about the reasons for delaying the adoption of this law, Zhmak noted that at present there are a lot of bills that are necessary and important for the country, but "in our case, the reasons are complex, including political disagreements among the deputies."

Source: www.en.interfax.com.ua