Ukrzaliznytsia, in cooperation with Moldovan authorities, is launching a trial logistics service to Chisinau International Airport—on April 13, the route of Train No. 351 (Kyiv–Chisinau) will be extended to Revaca Station, located near the airport.
According to the company, a free shuttle will be provided for passengers at Revaka Station to transport them to the airport terminal.
Ukrzaliznytsia noted that the test run is intended to demonstrate the feasibility of a stop near the airport, and if there is significant demand, Revaka could become a permanent stop on Train No. 351’s route.
JSC Ukrzaliznytsia held limited negotiations from April 1 to 8 with members of the ad hoc group (AHG) of holders of its Eurobonds with a face value of $1.055 billion, during which it presented its proposal for their restructuring, but so far without success.
“…the bondholders noted that, although they support a consensual restructuring of the bonds, they do not wish to participate in Ukrzaliznytsia’s proposal and have not submitted a counterproposal at this stage,” the company said in a statement on Friday.
It is noted that the group of bondholders decided not to seek an extension of the limited negotiations after the expiration of the specified period.
“Although Ukrzaliznytsia and the holders of restricted-rights bonds did not reach an agreement on the terms of the bond restructuring during the limited period, Ukrzaliznytsia intends to continue good-faith cooperation with AHG, in particular through the parties’ respective advisors, with the aim of reaching an agreement,” the statement noted.
According to the statement, Ukrzaliznytsia was joined by its legal advisors Clifford Chance LLP and Sayenko Kharenko, as well as its financial advisors Rothschild & Cie and FinPoint LLC, while the holders of restricted-rights bonds were joined by AHG’s legal advisors Hogan Lovells International LLP.
As stated in the restructuring presentation, Ukrzaliznytsia proposed writing off 20% of the principal amount, deferring the final repayment of the Eurobonds until June 2033, and beginning their soft amortization starting in December 2030—in six equal installments of $150 million.
At the same time, the company additionally wants to link the amount of these payments to the volume of freight traffic. “Each individual payment of $150 million may be adjusted upward or downward within the range of $112–168 million depending on the volume of freight traffic,” the presentation notes.
As for interest, in the first year (from June 2026 to June 2027), it was proposed to pay only 1.5% in cash; in the second year, 2%; in the third, 4%; in the fourth, 6%; and in the last three years, 7.75% each.
As for overdue interest, which will amount to $83 million as of June 30 of this year, Ukrzaliznytsia would also like to write off 20% of this amount, and of the remaining $67 million, pay 20% in cash—or 1.3 cents per dollar of face value—and capitalize the rest into a new instrument.
If this proposal is accepted, the company would pay only $20 million and $16 million in cash on the Eurobonds this year and next year, respectively, while in 2028 – $77 million, in 2029 – $121 million, in 2030 – $240 million, $389 million in 2031, $434 million in 2032, and $155 million in 2033.
As reported, in January 2025, Ukrzaliznytsia capitalized the coupon payments on the 2026 Eurobonds with a rate of 8.25% totaling $108.28 million, and on the 2028 Eurobonds with a 7.875% coupon rate totaling $51.9 million. This increased the outstanding amounts of these issues to $703.2 million and $351.9 million, respectively.
In January of this year, the company defaulted on $45 million in coupon payments on the 2026 and 2028 Eurobonds, due on January 9 and 15, respectively, and announced its intention to initiate a comprehensive restructuring of its financial obligations under the credit agreements related to the bonds, with the participation of qualified financial and legal advisors.
The company cited the prolonged decline in freight revenue amid a decrease in freight volumes—which is expected to reach approximately 17% in 2025— as well as an increase in attacks on the railway, the total number of which in 2025 (1,195) exceeded the combined figure for 2023–2024.
In February, the international rating agency Fitch Ratings downgraded the long-term issuer default rating (IDR) of JSC Ukrzaliznytsia to “RD” (Restricted Default) from “C,” and downgraded the long-term ratings of its Eurobonds maturing in 2026 and 2028 to “D” from “C.”
According to the presentation, in 2025, Ukrzaliznytsia saw its revenue decline by 15.6% to $2.189 billion and its EBITDA by 30.2% to $293 million, of which $270 million consisted of budgetary support. The net debt-to-EBITDA ratio rose to 5.2.
JSC Ukrzaliznytsia (UZ) updated the rates for the use of its own railcars for transportation on the 1,520 mm gauge track effective April 1, 2026, and increased the tariff for grain cars to 2,500 UAH/day (excluding VAT), which is 19% higher than the March rate, according to the company’s website.
According to the published rates, in the food transportation segment, the cost of using tank cars rose by 10.7%—from 1,400 UAH to 1,550 UAH per day. At the same time, the fee for using railcars for transporting flour (conditional type 972) remained unchanged in April—203 UAH per day.
Ukrzaliznytsia also revised rates for flatcars: the rate for 40-foot flatcars increased to 1,450 UAH/day (+200 UAH), while the rate for 60-foot flatcars remained unchanged at 1,100 UAH/day, while the rate for 80-foot platforms decreased to 1,550 UAH/day (-100 UAH). The rate for timber-carrying platforms increased by 100 UAH to 1,660 UAH/day.
Meanwhile, the fee for using the most common type of rolling stock—open cars—rose by 20.6% in April, to 1,750 UAH/day, compared to 1,450 UAH in March. The cost of using ore cars increased 3.2-fold, to 865 UAH/day, compared to 270 UAH in the previous month.
Rates for universal flatcars (2,400 UAH/day) and tanks for transporting liquefied gas (320 UAH/day) remained virtually unchanged, according to JSC “Ukrzaliznytsia.”
Ukrzaliznytsia is organizing the first spring retro tour along Europe’s longest narrow-gauge railway—the Haivoron Railway—which will take place on March 21, according to the press service.
Ukrzaliznytsia invites outdoor enthusiasts and railway fans to welcome spring aboard the “Haivoron Express,” which will be pulled by Ukraine’s oldest operating steam locomotive, built in 1938.
The tour program includes a ride on a retro train, picturesque views of the Podillia region, traditional Ukrainian cuisine, and a cultural and artistic program. Charity fairs in support of the Armed Forces of Ukraine, featuring local delicacies and handmade goods, are also planned. In total, three tourist routes are planned as part of the retro tour, including narrow-gauge trips from “Haivoron to Khashchuvate” and “Haivoron to Peredbuzhzhia,” as well as a standard-gauge trip to Henrikhivka.
For passengers’ convenience, direct trailer cars have been designated for the “Kyiv–Haivoron,” “Lviv–Haivoron,” and “Odesa–Haivoron” routes.
Tickets are already available via the “Ukrzaliznytsia” mobile app, on the official website, and at station ticket offices. The average one-way fare is approximately 145 UAH for adults and 110 UAH for children under 14
On March 3, the Cabinet of Ministers of Ukraine approved a resolution to allocate UAH 16 billion to JSC Ukrzaliznytsia to launch a mechanism for state-ordered passenger rail transport in 2026, according to the Ministry of Development of Communities and Territories of Ukraine.
“The mechanism provides for compensation to Ukrzaliznytsia for the difference between the actual cost of passenger transportation and the income from ticket sales at current, socially accessible tariffs,” the Ministry of Development said in a Telegram post.
According to the information, funding will be provided on a quarterly basis through advance payments, and it is also planned to cover the costs of passenger transportation that were actually incurred in January-February 2026.
“The pilot project is an important step towards the introduction of the European PSO model in Ukraine – state procurement of socially important transport services – and the creation of a transparent and predictable system for financing passenger rail transport,” the Ministry of Development emphasized.
It recalled that the decision to launch this mechanism and the instruction to allocate funds for this from the reserve budget was approved by Cabinet Resolution No. 232 of February 18 this year. According to this document, advance payments to the carrier in the first quarter of this year will be made by March 6, and in the second, third, and fourth quarters – by March 25, June 25, and September 25, respectively.
For this year, the volume of state orders is set at 41.76 million train-kilometers in domestic traffic, with a planned cost of UAH 12.92 billion, while the planned revenue is projected at UAH 7.37 billion. In addition, planned investment costs of UAH 10.44 billion are included, which together forms a total of UAH 16 billion.
According to the results of Ukrzaliznytsia’s activities in 2024, the loss in the passenger transportation segment increased by UAH 2.4 billion, or 15.4%, to UAH 18.1 billion, which was covered by the profit from the freight transportation segment, which amounted to UAH 20.4 billion.
As reported by Serhiy Leshchenko, deputy chairman of the supervisory board of Ukrzaliznytsia, due to the loss of 49% of freight transportation in 2021-2025, the company can no longer subsidize unprofitable passenger transportation at their expense, proposes to increase freight tariffs by 41.5% in 2026 in two stages, and requests budget support.
In January-September 2025, Ukrzaliznytsia reduced its income from ordinary activities by 15.4% compared to the same period in 2024, to UAH 66.03 billion, and received a net loss of UAH 7.32 billion, compared to a net profit of UAH 1.66 billion in January-September 2024.
Revenue from passenger transportation increased by 11% to UAH 9.5 billion, but revenue from freight and postal transportation decreased by 19% to UAH 50.1 billion, and revenue from other services decreased by 14.7% to UAH 6.36 billion.
Investment expenses for the first three quarters of 2025 increased to UAH 11.51 billion from UAH 9.46 billion in the same period last year.
Russian troops carried out about 1,200 combined strikes on Ukraine’s railway infrastructure in 2025, which is one of the three key problems of the season for agricultural exports, said Valery Tkachov, deputy director of the commercial department of Ukrzaliznytsia (UZ).
“The most painful thing for us is that our employees are dying under enemy fire. More than 1,000 railway workers have already been killed during the full-scale war. This is the most difficult challenge, which cannot be measured only by technical indicators,” he said at the Forbes Agro conference in Kyiv on Thursday.
Tkachov named security as the first systemic problem. Last year alone, the enemy carried out 1,200 attacks on railway energy facilities, rolling stock, and control centers in an attempt to completely stop the movement of export cargo.
Tkachov named the second critical problem as restrictions on the external power supply to the network due to strikes on the energy sector, which directly reduces the throughput capacity of key trunk lines. In particular, after the shelling of the Kolosivsky passage in the south and the Kamyanets-Podilsky junction in the west, Ukrzaliznytsia was forced to switch to the use of diesel locomotives on a massive scale.
This leads to a significant slowdown in train traffic, restrictions on train weight, and an increase in transportation costs due to the high cost of diesel fuel compared to electricity. The third set of problems in the work of Ukrzaliznytsia, according to Tkachov, covers economic and political barriers.
This particularly concerns restrictions on western land crossings from neighboring countries and low demand for Danube ports. Despite the availability of alternative routes through Reni and Izmail, agribusiness still prefers the ports of Greater Odessa, which creates an uneven load on the infrastructure.
The deputy director of the UZ department assured that the railway network remains stable, but its efficiency is still critically dependent on the stability of the power system and the security situation on the southern approaches to sea terminals.
