Ukrzaliznytsia wins ruling to cut debt by $15.6 million

Following a complaint from state-owned Ukrainian rail company Ukrzaliznytsia, the Eastern Commercial Court of Appeal based in Kharkiv agreed to reduce the state-owned company’s debt to Russian bank Sberbank from $56.1 million to $40.55 million.

Ukrzaliznytsia accrued this debt following a long legal battle over its subsidiary enterprise Donetsk Railway. This regional rail company had accumulated large debts before Russia launched its war against Ukraine in the eastern Donbas region in 2014. It borrowed from major Russian banks including Sberbank, VTB, and others.