Direct budget financing of passenger transportation is the most effective model of state support for the railway industry, said Doctor of Technical Sciences, Professor Andrei Prokhorchenko on the blog on the Central.

" This is normal international practice, because the railway performs an important social function, ”the expert column says.

In his opinion, the practice of shifting the burden of passenger expenses for profitable freight transportation is outdated.

World experience shows that transparent state subsidies can improve the quality of service, maintain tariff availability and ensure sustainable mobility of citizens.

Prokhorchenko emphasized that in the EU and the USA there are mechanisms of contracts for socially important transportation (PSO), which allow you to compensate for carrier expenses without violating the competitive environment.

The Ukrainian railway is systematically unprofitable due to passenger transportation. This year, the state took some obligations to Ukrzaliznytsia. Experts expect a similar solution for 2026.