Ukrzaliznytsia’s losses from passenger transportation exceed 20 billion hryvnias, since the state does not compensate for the transportation of preferential categories of passengers.
How are costs compensated?
To cover these losses, UZ is increasing freight tariffs for businesses, which contradicts European practice. In EU countries, passenger transportation is usually financed from the budget or through direct subsidies, and not from the private sector.
What needs to be changed?
Experts point to three main steps that will help solve the problem:
Increasing the level of service in passenger transportation.
Reviewing the tariff policy to make prices economically justified.
Fighting corruption in ticket sales, which remains an acute problem.
If the situation is not changed, Ukrzaliznytsia will continue to generate losses, and businesses will lose competitiveness due to inflated freight tariffs.
