Business news from Ukraine


10 July , 2020  

The restructuring plan of JSC Ukrzaliznytsia (Kyiv) provides for its division into a number of specialized companies, up to five, member of the company’s supervisory board Serhiy Leschenko has said in an interview with Interfax-Ukraine. “The Ukrzaliznytsia restructuring plan presents the company’s unbundling for discussion – there are different approaches involving the creation of three to five verticals. Cargo and passenger transportation, infrastructure, repairs and non-core assets. But this, of course, is an ideal plan,” he declared.
At the same time, according to Leschenko, Ukrzaliznytsia has not been able to separate at least passenger traffic into a separate company and stop subsidizing it from freight transportation for a year.
“Today I’m very upset that when the conditions were favorable for the company, the moment was missed. And we got into a certain centrifuge when we need to accept the anti-crisis program and reform the company at the same time,” he said.
He said Ukrzaliznytsia is still a huge national treasure that needs to be used correctly and which will lose its value simply under the influence of time, if it is not maintained and modernized.
“We need to optimize the company as much as possible – its purchases, staff, and expenses. Even if not everyone benefits from it, someone will get more orders, someone will close or will be fired. But in general, the company should be the winner. And in many ways it will depend on the new head of the company,” the official said.