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On 13 May, the Logistics Committee of the European Business Association held a meeting with representatives of Ukrzaliznytsia<\/span><\/span>. The discussion focused on the financing of passenger transportation and further steps towards reducing cross-subsidisation between the freight and passenger segments.<\/p>\n Oleh Yakovenko<\/span><\/span><\/strong>, Director of the Strategy and Transformation Department at Ukrzaliznytsia, presented the results of a two-year pilot project aimed at reforming the financing mechanism for passenger transportation. As a reminder, the state previously allocated UAH 16 billion from the reserve fund to cover passenger transportation costs.<\/p>\n Participants discussed the mechanism for distributing the allocated funds, the expected losses of passenger transportation in 2026, as well as plans for financing the passenger segment in 2027.<\/p>\n Project details<\/strong><\/p>\n In 2026, the public service obligation will apply only to domestic long-distance and regional transportation and will not cover suburban or international services.<\/p>\n At the same time, the suburban segment generates approximately UAH 11 billion in losses annually, which are currently covered by freight transportation revenues.<\/p>\n Representatives of Ukrzaliznytsia reported that despite security-related challenges, the company managed to achieve the following results in the first quarter of 2026:<\/p>\n Key challenges<\/strong><\/p>\n Representatives of the railway operator also outlined a number of challenges accompanying the implementation of the project:<\/p>\n According to Ukrzaliznytsia, the strategic objective is to introduce a fully-fledged Public Service Obligation (PSO) model based on European practice from 2028 onwards, ensuring a transparent and predictable financing mechanism for socially important passenger transportation.<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" On 13 May, the Logistics Committee of the European Business Association held a meeting with representatives of Ukrzaliznytsia. The discussion focused on the financing of passenger transportation and further steps towards reducing cross-subsidisation between the freight and passenger segments. Oleh Yakovenko, Director of the Strategy and Transformation Department at Ukrzaliznytsia, presented the results of a […]<\/p>\n","protected":false},"author":33544,"featured_media":741711,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[4,5,22],"tags":[],"yoast_head":"\n\n
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\nThis creates risks for the regularity of payments and complicates financial planning.<\/li>\n
\nCurrently, there is no instruction requiring the Ministry of Finance to annually allocate state budget expenditures for the implementation of the pilot project.<\/li>\n
\nUntil the methodology for accounting allocated costs is approved, the actual cost of the public service obligation is calculated without taking into account revenues and indirect costs.<\/li>\n
\nThe current state financing mechanism does not cover suburban transportation.<\/li>\n<\/ul>\n