Over 70% of the main volume of purchases by Ukrainian Railways (UZ) are made through direct contracts with manufacturers

Over 70% of the main volume of purchases by Ukrainian Railways (UZ) are made through direct contracts with manufacturers, as reported by the railway portal Railway Supply.

Approximately 70% of the annual monetary value of material and technical resource purchases by PJSC “Ukrainian Railways” for key items are conducted through direct agreements with manufacturers.

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This includes, among other things, diesel fuel, natural gas, electricity, certain spare parts, and lubricating oils.

Additionally, partial purchases of rails are already made through direct contracts. Thus, Ukrainian Railways (UZ) has minimized corruption risks in procurement and obtains quality products at the most favorable prices.”

At the beginning of the full-scale Russian invasion, the company entered into direct contracts to purchase diesel fuel with foreign producers, including ExxonMobil – Asia Pacific (a subsidiary of one of the world’s largest oil refining companies, ExxonMobil) and Orlen Lietuva (the Lithuanian unit of the Polish oil conglomerate Orlen).

Since September 2021, Ukrainian Railways (UZ) has been procuring electricity through direct contracts directly from the producer, the State Enterprise “Energoatom.”

Furthermore, in early 2023, “Ukrzaliznytsia” signed a direct contract for gas supply with “Ukrgasvydobuvannya,” a company under state ownership.

As previously reported, last year, UZ purchased electricity for nearly UAH 1.5 billion from the State Enterprise “Energoatom.

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