Buying a train ticket is not just a transaction – it is the conclusion of a public contract, so “Ukrzaliznytsia” (UZ) is obliged to provide services to everyone who applies to it.
According to Kirill Iordanov, a senior attorney at Barristers JSC, it is only the law, not UZ’s internal documents, that can restrict the right to travel because of the impossibility of buying a ticket through Dia.
“Buying a train ticket is not just a transaction. It is the conclusion of a public contract. In simple language: it’s like coming to the store for bread. The store cannot refuse to sell you if you have the money. In the same way, “Ukrzaliznytsia” as a carrier, occupying a monopoly position in the country, is obliged to provide services to everyone who applies to it. This is directly spelled out in Article 633 of the Civil Code of Ukraine,” he told Interfax-Ukraine.
Iordanov noted that by setting “Dia” as the only key to access the service, the carrier arbitrarily changes the conditions of its provision, it does not just offer a convenient digital service, but forces its use, creating an artificial barrier.
“It turns out to be a paradox: your passport, the main identity document, suddenly becomes less important than having an app on your phone. This is not just an inconvenience – it is a direct violation of the principle of equality. The Constitution of Ukraine guarantees everyone the right to freedom of movement. Of course, this right can be restricted, but only by law, not by an internal decision of a joint-stock company (UZ – IF-U), even if it is state-owned,” he said.
Iordanov believes that the innovation of “Ukrzaliznytsia” to sell tickets only through authorization in “Diya” in practice is a restriction of freedom of movement.
“Ukrzaliznytsia’s initiative hurts the so-called ‘digital divide’, putting huge groups of people in an unequal position. All these people are not speculators. They are ordinary passengers, who are actually deprived of access to a basic service by the state represented by Ukrzaliznytsia,” says the lawyer.
Iordanov also drew attention to the risks of vulnerability of “a non-alternative system tied to the complex interaction of several platforms (UZ, Diya, BankID, mobile operators).”
“Critical dependence on a single infrastructure creates huge risks: in case of a powerful DDOS attack on Diya’s servers or a technical failure in Ukrzaliznytsia’s system, ticket sales for key destinations will be completely paralyzed. Without an alternative in the form of ticket offices, thousands of people will be trapped at a critical moment, making the system potentially dangerous. Adding to this system vulnerability is the human factor, as Diya is inextricably linked to the smartphone. If the phone is lost, broken or simply discharged, a person loses the only key to access the service, turning an ordinary life nuisance into a serious problem,” he stated.
In addition, Iordanov noted that the initiative creates invisible barriers to the outside world, as foreign tourists or Ukrainians permanently residing abroad cannot use the system.
At the same time, he drew attention to the “legal vacuum of responsibility” in case a passenger suffered financial losses due to a failure in the system.
“The current legislation does not provide a clear answer, leaving the consumer alone with his problem, with no real levers to compensate for losses. This set of technical and operational risks demonstrates that the hasty introduction of alternative-free digital solutions can create a collapse where before it was just an inconvenience,” he said.
At the same time, Iordanov emphasized that the judicial prospects of lawsuits by passengers who will not be able to buy a ticket because of the innovations are very high.
“The arguments for the court are ironclad: violation of consumer rights, coercion to conclude a contract on discriminatory terms and violation of constitutional rights. The court is likely to side with the person and oblige the carrier to remove the obstacles,” he said.
In addition, according to Iordanov, there may be a harsh reaction of the AMCU to UZ’s actions – from mandatory recommendations to change the rules to a multimillion-dollar fine.
“Ukrzaliznytsia is a monopolist. And abuse of monopoly position is a direct competence of the AMCU. Creating conditions under which one group of consumers (with “Dia”) gets access to the service, and the other (without ‘Dia’) – not, is a classic example of such abuse”, – he emphasized.
“When introducing any innovation in the social sphere, it is important to keep in mind the key principle – inclusiveness and availability of choice. “Diya.Pidpys” can be a great verification tool, a convenient and modern option for many passengers. However, preserving the possibility to buy a ticket in the traditional way, for example, at the ticket office by passport, will avoid creating barriers for different groups of citizens,” the lawyer summarized.
As reported, due to the shortage of tickets for trains UZ since July 25 spread in test mode verification through “Diya.Pidpys”, which works for international flights and five popular domestic trains. However, the move was heavily criticized by some passengers. In response, the company refused to verify through “Dia.Pidpys” when buying tickets for two domestic trains – #105/106 Odessa – Kiev and #91/92 Lviv – Kiev and test left it for three trains: #29/30 Kiev – Uzhgorod, #12 Lviv – Odessa and #27/28 Kiev – Chop.
The volume of export traffic of JSC Ukrzaliznytsia in January-June 2025 decreased by 13.5% to 38.7 million tons, domestic traffic by 11.7% to 35.5 million tons, while the volume of imports increased by 5.4% to 5.3 million tons, the company’s CEO Oleksandr Pertsovsky reported on Facebook.
“In the first half of 2025, Ukrzaliznytsia transported 79.6 million tons of cargo, which is 11.8% less than last year. With this trend continuing throughout the year, the annual figure will be approximately 50-52% of the freight volume in the period before the full-scale invasion (2021). We are currently experiencing the lowest load in the history of the railway, which is extremely painful for the company’s ability to function, as freight traffic has always been the main source of income for the railway,” he said.
Percovsky clarified that the largest decline was in the transportation of coal, which fell by 27.5% due to the loss of mines and the deterioration of the security situation, and grain and milled products, which fell by 32.5%.
“Farmers point to the late start of the season, so we are counting on some levelling off later in the year (more shipments went out in July). Fair rules of the game are also important: we are working closely with the State Railway Transport Inspectorate on stricter checks of weight limits so that grain is not transported to ports in violation of weight limits, ‘killing the roads’ with trucks,” said the CEO.
According to him, the company managed to work with customers in the construction industry, and against the backdrop of some market revival, construction transportation of building materials increased by 4% and cement by 10%. However, as Pertsovsky emphasized, the current ultra-low tariffs for this group of goods do not add to UZ’s profits.
The CEO explained the growth in imports by the work of colleagues from the commercial team, who were able to convince important players in the fuel market to try rail services and use our logistics with our subsidiary UZ Cargo Poland.
As for transit, it is almost non-existent in the context of the war with Russia, although the company is taking its first steps towards building multimodal routes, Pertsovsky said. He recalled that in the first half of this year, the first transit container ferries were sent to Georgia, opening up opportunities for transit to Azerbaijan, Kazakhstan, and, in the future, increasing transit volumes from China through the “Middle Corridor.”
He also said that UZ had launched a systematic survey of freight customers. “The customer loyalty index (NPS) was -27%. It’s an honest start, but it was important to record it. We have taken specific steps (in particular, in terms of digital services and work on cargo delays) and will continue to measure progress,” Pertsovsky emphasized.
Among the issues that the company was unable to resolve in the first half of the year, he mentioned the indexation of freight tariffs, which “froze at the level of mid-2022.”
“We are working to prove that there must be a balance and a fair approach to those who make it possible to sell these cargoes – our Ukrainian railway workers,” said the CEO of UZ, pointing to wage growth and investments in the company’s customers.
As reported, in 2024, Ukrzaliznytsia increased freight traffic by 17.9% compared to the previous year, to 174.9 million tons.
Last year, UZ increased export transportation by 51.2% to 84.67 million tons, imports by 40.9% to 9.63 million tons, while domestic transportation decreased by 5.5% to 80.2 million tons.
Additional summer trains will run in August, according to the press service of Ukrzaliznytsia JSC.
In particular, train No. 708/707 Odessa-Vinnytsia will depart from Odessa and Vinnytsia on August 1 and 3.
Trains No. 740/739 Kyiv-Kryvyi Rih and No. 753/754 Kryvyi Rih-Kyiv will run on July 31, as well as on August 2, 4, 6, 8, and 10.
Train No. 275/276 Kyiv – Vinnytsia will depart from Kyiv and Vinnytsia on August 1 and 3.
The agency said that compartment cars with seats will be used on the routes and urged passengers to choose their seats carefully and pay attention to the note that there will be no linen on these trains.
“Tickets for most trains are available on all official railway resources. Tickets for trains to/from Kryvyi Rih will go on sale soon,” the agency emphasized.
In response to ticket shortages, Ukrzaliznytsia is rolling out a trial version of the “Dія.Підпис” verification system, which already works for international flights, for five popular domestic trains.
“We continue to use all means to reduce the number of possible abuses when purchasing train tickets. Therefore, from August 1, in order to buy or return tickets for certain domestic trains, passengers must verify their identity through ”Dія.Підпис,” the company said in a statement.
According to the statement, during the first stage of implementation, verification will be required for the following trains: No. 105/106 Odesa-Kyiv; No. 91/92 Lviv-Kyiv; No. 29/30 Kyiv-Uzhhorod; No. 12 Lviv-Odesa and No. 27/28 Kyiv-Chop.
Tickets for these flights will not be available at ticket offices.
The new rules will not apply to flights with special ticket reserves for military personnel.
Ukrzaliznytsia also noted that it is continuing to work on introducing authorization in the app via BankID.
“Ukrzaliznytsia announces auctions for the sale of crushed stone. The first auctions for 72.5 thousand tons of crushed stone will be held on July 24-25 on the Prozorro Sales website, the company’s press service reports.
The release specifies that the sale of crushed stone became possible due to the decision of the Cabinet of Ministers, which simplified the procedure for disposing of property for Ukrzaliznytsia and granted permission to sell it.
The company has already held a meeting with the business to discuss current issues of the crushed stone market and the prospects for selling through electronic auctions.
The auctions will be based on the English auction principle, and Ukrzaliznytsia expects active competition among the participants.
In the future, the company plans to sell almost 1.3 million tons of crushed stone through separate lots.
Ukrzaliznytsia JSC (UZ) paid the coupon payment on its 2026 Eurobonds due on July 9 in full and on time, said Oleksandr Pertsovsky, Chairman of the Board of the company.
On the sidelines of the panel discussion “No Security – No Recovery” organized by the Pinchuk Foundation and YES on the sidelines of URC2025, he emphasized that the company was fulfilling its obligations despite the deterioration in liquidity.
The day before, UZ announced that it would pay coupons due on July 9 and 15 on its Eurobonds maturing in 2026 and 2028, respectively, although in Q1 2025, EBITDA reached negative territory due to a drop in cargo volumes (-17% year-on-year compared to Q1 2024) and a rapid increase in operating expenses.
“Since the beginning of the year, available cash has decreased significantly, increasing the need for financing from international financial institutions to cover critical capital investments and liquidity needs during the ongoing war,” the press service said.
“Without such support from strategic partners, the company would likely not have been able to fulfill its financial obligations to Eurobond holders,” the press release said.
In addition, it was noted that Ukrzaliznytsia has engaged a financial advisor and is seeking a solution to its Eurobonds through negotiations with the Eurobond holders in order to achieve appropriate debt relief and mitigate liquidity challenges in the coming years.
In January 2025, Ukrzaliznytsia capitalized the postponed coupon payments on the 8.25% Eurobonds 2026 in the amount of $108.28 million and the 7.875% Eurobonds 2028 in the amount of $51.9 million as a result of the restructuring in 2022.
