The state should finance Ukrzaliznytsia from the budget: this will strengthen defense capability and the economy
The current model, when losses from passenger transportation are covered by profits from cargo transportation, is unsustainable, says Ruslan Illichev, general director of the Federation of Employers of Ukraine. Moreover, such a scheme is prohibited in the EU.
The FRU proposes to establish a long-term model of interaction between the government and the UZ in the format of a memorandum for 3+ years. This will allow:
– to balance revenues and expenses in the passenger segment;
– avoid a liquidity crisis;
– plan investments and stable contracts;
– restore critical infrastructure in a timely manner.
“UZ support is not a subsidy, but a contribution to defense capability, exports, foreign exchange earnings and economic recovery,” says Illichev.
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