The Ukrainian railway has been operating at a loss in passenger transportation for many years. The real cost of tickets has consistently failed to cover the actual costs, a situation not unique to Ukraine but seen in many countries.
Historically, Ukrzaliznytsia offset these losses with profits from freight transportation through cross-subsidization. However, the war drastically reduced freight volumes, worsening the railway's financial status.
The discussion noted that similar practices exist in European countries. For example, the German railway receives substantial subsidies from the federal budget to maintain passenger fares. In Ukraine, however, direct state subsidies for the railway are less transparent, often accompanied by non-core expenses being allocated to the company.
Possible solutions include restructuring Ukrzaliznytsia and privatizing certain assets. The strategy would keep key infrastructure (tracks, contact networks) in state hands, while allowing privatization of stations, repair plants, and service enterprises. This approach aims to reduce financial burdens and improve service efficiency.
Nevertheless, attempts at railway reform over the past 15 years have brought little change, and optimizing Ukrzaliznytsia's operation remains a pressing issue, especially during wartime.
