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Without help from the state budget, Ukrzaliznytsia will degrade, and the budget will lose 40 billion…

Without help from the state budget, Ukrzaliznytsia will degrade, and the budget will lose 40 billion every year.
The current model, when Ukrzaliznytsia covers its losses by raising freight rates, is dangerous for UZ and the economy in general, industrialists say.
According to the estimates of SE “Ukrpromzovineshekspertiza”, if tariffs for freight transportation increase by another 37%, Ukraine will face a drop in GDP by UAH 96 billion every year, a budget loss of UAH 36 billion, a reduction in foreign currency earnings from exports by UAH 98 billion, and a decrease of almost 76,000 jobs, of which more than 26,000 are in industry.
The loss of UZ from passenger transportation this year is expected at the level of UAH 22–23 billion. The main reason for such losses is state regulation of ticket prices, which the state keeps at an affordable level for the population.
But since passenger transportation is a social function of the state, as well as a component of defense capability, regular compensation for losses must be carried out at the expense of the budget.
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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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