The European Business Association has addressed Oleksandr Kubrakov, Deputy Prime Minister for Reconstruction of Ukraine and Minister for Development of Communities and Territories, with a request to allocate funding in the State Budget for 2026 to compensate JSC \u201cUkrzaliznytsia\u201d for losses incurred from passenger transport services.<\/p>\n
Experts from the EBA stress that the issue of loss-making passenger transportation has been critical for many years. In 2024 alone, Ukrzaliznytsia\u2019s passenger transport losses exceeded UAH 18 billion<\/a>, and in 2025, despite UAH 4.3 billion being allocated for partial compensation, the figure is projected to rise above UAH 22 billion<\/a>. On average, revenues in the passenger segment cover only about 40% of operational costs<\/a>.<\/p>\n Currently, these losses are offset through cross-subsidisation using revenue from freight transportation. However, the business community considers this practice economically unsound, inconsistent with European railway market principles, and harmful to the development of the rail sector.<\/p>\n Firstly, this approach shifts the burden of passenger transport losses onto freight customers, creating an additional financial load for cargo owners. This undermines both the competitiveness and volume of freight transport, ultimately stalling sectoral growth.<\/p>\n Moreover, the European model of the railway market does not envisage cross-subsidisation between passenger and freight services at all.<\/p>\n Considering the social importance of maintaining affordable passenger transport and the economic drawbacks of the current approach, member companies of the EBA believe that passenger transport should be subsidised from the state budget.<\/p>\n Ukrainian legislation supports this approach: the Law of Ukraine \u201cOn Railway Transport\u201d<\/a> stipulates that losses arising from the application of preferential tariffs for passenger transport should be reimbursed from the state or local budgets. Furthermore, under the Budget Code of Ukraine<\/a>, the Ministry for Development of Communities and Territories is authorised to submit a corresponding budget request, and the Ministry of Finance is responsible for considering such expenditures when preparing the State Budget draft.<\/p>\n In this context, the European Business Association calls on:<\/p>\n According to the business community, establishing a transparent and predictable system for financing passenger transportation will contribute to the development of an efficient and balanced tariff policy in the railway sector, aligned with national interests and promoting the sustainable development of Ukraine\u2019s rail transport system.<\/p>\n","protected":false},"excerpt":{"rendered":" The European Business Association has addressed Oleksandr Kubrakov, Deputy Prime Minister for Reconstruction of Ukraine and Minister for Development of Communities and Territories, with a request to allocate funding in the State Budget for 2026 to compensate JSC \u201cUkrzaliznytsia\u201d for losses incurred from passenger transport services. Experts from the EBA stress that the issue of […]<\/p>\n","protected":false},"author":33544,"featured_media":658706,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[15564,15563,15574],"tags":[],"class_list":["post-789590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lobbying-news-en","category-main-news-en","category-news-and-articles-from-association-en"],"_links":{"self":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/789590","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/users\/33544"}],"replies":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/comments?post=789590"}],"version-history":[{"count":0,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/789590\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media\/658706"}],"wp:attachment":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media?parent=789590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/categories?post=789590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/tags?post=789590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n