Ukrzaliznytsia and business urge parliament to adopt a relevant law

Ukrzaliznytsia and the European Business Association (EBA) urge the Verkhovna Rada of Ukraine to consider the draft law «On Railway Transport of Ukraine» as soon as possible, informs Railway Supply magazine with reference to the the websites of Ukrzaliznytsia and EBA.

On Railway Transport of Ukraine

“For more than a year now, the long-awaited draft law «On Railway Transport of Ukraine» №1196-1, designed to reform the railway industry, has been under consideration by the Verkhovna Rada Committee on Transport and Infrastructure, and is not submitted to the Verkhovna Rada for consideration,” the EBA said.

The Association’s experts note that the rail transportation market needs reforming for many years. The changes are needed to improve the efficiency of rail transport, stimulate investment and introduce full access to private locomotive transport. In addition, this is part of Ukraine’s obligations under the Association Agreement with the EU.

At the same time, instead of considering a specialized law, the Verkhovna Rada on January 27 decided to create a temporary commission of inquiry to assess the state of Ukrzaliznytsia, as well as to investigate possible violations of legislation by the enterprise’s management. 283 Deputies voted for this bill.

The project was initiated by Deputy Yulia Grishina, who became the chairman of the commission. It includes elected representatives from different parties and groups in parliament.

The text of the explanatory note to the document states that from the beginning of 2017 to the present, there has been a sharp deterioration in production discipline at JSC Ukrzaliznytsia. And in 2018 and 2019, a number of regulatory documents were adopted, according to which Ukrzaliznytsia “was practically brought under the control of foreigners, and the state actually lost the possibility of direct control.”

“There is reason to believe that the inaction and lack of professionalism of the heads of the management bodies of Ukrzaliznytsia from 2017 to the present have led to a significant deterioration in the technical condition of the enterprise and a decrease in the main production indicators, which, in turn, gives reason to believe that the financial statements are unreliable, and the enterprise has negative financial indicators and incurs losses ”, – emphasized in the explanatory note.

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