Ukrzaliznytsia Prepares New Ticket Prices for First Class and Intercity: Striving for Stability Amid Challenging Times
Ukrainian railway workers are working towards improving the financial stability of the company, which is currently in a very difficult situation due to extensive losses and damages caused by the war.
According to Sergey Leshchenko, the deputy chairman of Ukrzaliznytsia’s supervisory board, there are plans to increase ticket prices for first class and Intercity trains, which is part of a strategic effort to combat financial difficulties.
Since the beginning of the year, the company’s net losses have reached nearly 7.2 billion hryvnias, while total passenger transportation losses for the past year amounted to over 18 billion hryvnias.
Internal reserves to cover these losses have already been exhausted, and now funding assistance is expected either from the state budget or through new optimization measures.
The supervisory board chairman also emphasized that between 2021 and 2025, the company lost more than half of its freight transportation volume, significantly worsening the situation.
As a result of Russian attacks this year, over three thousand infrastructure objects have been damaged, and approximately 800 attacks have occurred.
To improve the situation, three strategic steps have been developed: internal optimization including scrap metal sales, which could bring in up to 10 billion hryvnias; additional funding from the state budget amounting to 16 billion hryvnias to compensate for passenger transportation; and an increase in freight tariffs along with dynamic pricing for premium passenger services.
A twice-yearly indexation of tariffs is also planned, potentially bringing an additional 22.5 billion hryvnias next year, responding to inflation and rising costs due to the war.
The company also plans to introduce a program called “eOselya” for railway workers, covering part of their housing expenses, funded by Ukrzaliznytsia.
These measures were approved by the Verkhovna Rada with support from over 150 deputies, demonstrating government commitment to stabilizing and restoring Ukraine’s railway sector.
As part of the winter support program, Ukrainians will have the opportunity for free travel within a 3,000-kilometer distance, facilitating visits to relatives, meetings with defenders, or recreation in summer camps, ensuring mobility and social connection during wartime.