“In the context of blocking the seaports of Ukraine by the Russian Federation and significant destruction of transport infrastructure, the railway is a key mode of transport that provides transportation,” the government notes in the materials of the draft state budget for 2023.

The Cabinet of Ministers said that since the beginning of Russia’s full-scale aggression, freight traffic, which is a key source of profit for JSC Ukrzaliznytsia, has decreased by 65.3%. As a result of the shelling, almost 6,300 km of tracks were destroyed. Railway Supply magazine writes about this with reference to finbalance.

UZ infrastructure

The state has already subsidized the activities of JSC “Ukrzaliznytsia”, so, according to the resolution of the Cabinet of Ministers of Ukraine dated March 3, 2022, the Ministry of Infrastructure was allocated UAH 17.95 billion from the reserve fund of the state budget for the implementation by Ukrzaliznytsia of measures to ensure the smooth functioning of railway transport in a military time.

Also, due to the fall in freight traffic, the rise in the cost of fuels and lubricants and the growing need for financial resources to restore the destroyed infrastructure, JSC Ukrzaliznytsia increased tariffs for freight transportation by 70%.

Malaszewicze is no longer an EU priority

The decrease in UZ transportation volumes has already led to revenue losses in the amount of UAH 3.30 billion, while there is a high probability of their growth to UAH 4.67 billion. As a result of depreciation of the national currency against foreign currencies, losses from exchange rate differences and financial losses of the company already amount to UAH 2.72 billion.

Additional expenses of the company for the restoration of infrastructure and repair of traction rolling stock in 2022-2023 may amount to UAH 2.4 billion.

The company also incurs indirect losses associated with the costs of evacuation, transportation of humanitarian aid, etc., which already amount to UAH 1.81 billion, while there is a high probability of such losses increasing to UAH 2.36 billion in 2022-2023, summarize in the government.

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