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Keeping rail ticket prices low is right, but the state has the finances…

Keeping train ticket prices low is correct, but the state should finance the difference from the budget
The government has decided to keep railway ticket prices low, and this is a socially correct decision, especially during wartime. But then the state must take financial responsibility for this policy.

Every year, passenger transportation of Ukrzaliznytsia creates a colossal deficit: costs reach more than 30 billion hryvnias, and revenues – only 7 billion. The difference of 23-24 billion must be compensated by the state.
This was discussed today at an expert discussion on the tariff policy of Ukrzaliznytsia, in which government and business representatives participated.
The participants noted that European partners currently cover a significant part of the social budget of Ukraine, and there is a surplus there, because it is forbidden to finance defense projects with this money.
That is where you should turn for help — with a transparent case for supporting critical infrastructure, which is Ukrzaliznytsia.
Instead, employers in industry and the agricultural sector are actually forced to cover this financial imbalance in passenger transportation today, due to increased tariffs for freight transportation, which puts them on the verge of closure.
But this is a path to nowhere, because a 37% increase in tariffs in 2026 can give UZ only half of the necessary funds, because as a result of such an increase, Ukrzaliznytsia will forever lose 15% of solvent cargo, which will plunge the railway company into a long-term crisis.

At the same time, the economy of Ukraine will lose 96 billion hryvnias of GDP and 76 thousand jobs due to the reduction of production, the State budget will not receive 36 billion hryvnias in the form of tax revenues.
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Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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