The Cabinet of Ministers decided to launch an experimental mechanism of state order for long-distance domestic passenger transportation. We are talking about a gradual transition to the European PSO (Public Service Obligation) model - when the state systematically compensates the carrier for the difference between the actual cost of transportation and the current socially accessible tariffs.

The new model introduces predictable rules for financing passenger transportation, reduces the financial burden on Ukrzaliznytsia, and will gradually eliminate cross-subsidies between types of railway transport activities - after all, the passenger segment was annually financed through freight transportation.

“The experimental mechanism is a step towards the full integration of the Ukrainian passenger transportation financing system into the European PSO model, which is widely used in EU countries,” the department noted..

“We have developed a mechanism that brings the Ukrainian system closer to the European model of ordering socially important transport services,” said Deputy Prime Minister for Reconstruction of Ukraine - Minister of Development of Communities and Territories of Ukraine Alexey Kuleba.

For 2026, the volume of the state order for passenger transportation is set at UAH 16 billion. These funds will cover key long-distance routes to keep the country connected. The state will not only order services, but also control their implementation.

The State Audit Service of Ukraine (SASU) will be involved in checking the correctness of expenses from the very beginning - so that every budget hryvnia is used effectively. Funds will be transferred quarterly by advance. Transportation performed in January-February 2026 will also be financed..

Earlier, people's deputies called on the government to allocate 26 billion hryvnia to Ukrzaliznytsia - this is the amount the company lacks to carry out passenger transportation and maintain financial stability. According to Deputy Chairman of the Transport Committee Alexey Movchan, the railway performs critical social functions, therefore its losses due to the war and the drop in cargo flows should be compensated by the state. However, the government has so far allocated only UAH 16 billion.

As you know, earlier Ukrzaliznytsia tried to initiate an increase in tariffs for freight transportation by 40% in order to cover losses from passengers, which had already reached UAH 22 billion. But the Ministry of Economy opposed it: they said that before raising tariffs for freight transportation, Ukrzaliznytsia must update the tariff collection, which has not been revised since 2009. " Some of the cargo will end up on the roads or simply disappear due to the shutdown of enterprises,” said the Minister of Economy.