"Ukrainian Railways" have fallen into poverty

03 April 2018, 12:36 | Economy
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The company "Ukrainian Railways" ("Ukrzaliznytsya") suffers serious losses because it is impossible to raise prices for the passage of passengers by rail. According to the plan, indexation of tariffs should occur in April and October 2018, but the Ministry of Infrastructure of Ukraine postponed it. For this reason, prices have not changed for several years already. "The level of tariffs for the transportation of passengers in domestic traffic in rail cars has remained unchanged since 2009, and in all types of wagons (excluding SW and" Intercity + ") - since October 2014," - said on the operator's website. It is noted that during this time, the consumer price index grew by 192.2%, and the industrial producers by 206.3%.

At the same time, the company claims that taking into account all the financial factors this year, the cost of travel by rail must be increased at least 2 times, so that this industry ceases to be unprofitable. The Ministry of Nezalezhnaya, however, does not hurry with the decision and while closely studying the corresponding order. It is worth emphasizing that a sharp jump in ticket prices will provoke a decrease in passenger traffic, which can also lead to serious losses.




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