Ukrzaliznytsia (UZ), subject to European and state co-financing, plans to implement the Mostytska-Sknyliv project in the next two years and further develop the Lviv-Uzhhorod -Chop and Lviv-Chernivtsi-Vadul-Siret (Romania), which will allow Ukraine to begin restoring and realizing its unique geographical status, said Oleg Yakovenko, director of the strategy and transformation department at Ukrzaliznytsia.
“We also plan to obtain grant funds for the Mostyska-Sknyliv project, which will connect 80 km of European gauge track between the Polish border and Lviv. Next, we are currently conducting technical and economic studies on the corridors connecting Lviv, Chernivtsi, and Romania,” Yakovenko said during the Kyiv International Economic Forum (KIEF) on Thursday, October 16.
According to him, as part of Ukraine’s integration into the European Union, UZ plans to develop 1435 mm gauge railways and European transport corridors on the territory of Ukraine. The European integration reform of the railway industry also envisages a radical change in the functioning of the entire railway model in Ukraine.
“First of all, we are talking about market reform, which involves separating the infrastructure operator within Ukrzaliznytsia from the transport operators. This will allow us to liberalize the market in the future. It will also allow us to create market mechanisms specifically for transport,” Yakovenko explained.
He named the introduction of European rules on technical compatibility and interoperability as another element of the reform. This concerns technical safety standards, as well as changes to the safety management system.
The director of the strategy and transformation department at Ukrzaliznytsia noted that a draft law “On the safety and interoperability of Ukraine’s rail transport” is currently planned to be submitted for adoption by the end of the year, while next year the company expects a law on market liberalization to be introduced.
As Yakovenko explained, it is expected that a so-called infrastructure access tariff will be formed, according to which market participants will be able to purchase certain access to transport routes from the infrastructure operator on a competitive basis.
“These tariffs will be regulated, i.e., they will be formed in accordance with the tariff formation procedure and will reflect economically justified tariffs in accordance with European rules,” emphasized the representative of Ukrzaliznytsia.
It is noted that the new system will introduce separate PSO (Public Service Obligation) contracts between passenger carriers and the state at the national level, as well as between carriers and local authorities. This should remove the financial burden from freight transport.
As reported, in September, a section of standard (“European”) 1435 mm gauge railway was opened between Uzhhorod and Chop in Zakarpattia Oblast, which will allow for direct rail connections between Uzhhorod and a number of European capitals.
In addition, in January 2025, it was reported that the reconstruction of the railway track on the section “Polish State Border – Mostyska II – Sknyliv (Lviv)” would be postponed until 2026, although in February 2024, the then Deputy Prime Minister for Recovery – Minister of Community, Territory and Infrastructure Development Oleksandr Kubrakov announced the start of construction by the end of 2024. Later it became known that Ukraine had failed to attract Connecting Europe Facility (CEF) funding for the project. It was reported that the US Agency for International Development (USAID) was considering financing 50% of the project’s cost, but it has since been liquidated.
CONSTRUCTION, EU, European gauge, GRANT, LVIV, UKRZALIZNYTSIA
Ukrzaliznytsia plans to introduce fixed-term contracts for the sale of scrap metal in order to increase buyer interest and ensure predictable revenue for the company itself, according to Yevhen Shramko, head of Ukrzaliznytsia’s Repair and Production Division.
“Currently, lots consist of 300 tons, 400 tons, and 1,000 tons. We will prepare a legal basis for putting up scrap metal that will still be processed. It is not yet physically on site, but we will cut and process it in order to ship it to the buyer,” Shramko said at a meeting with associations and businesses in Kyiv on Thursday.
According to him, this will enable buyers to have predictable scrap metal supplies and work on large contracts.
According to an Interfax-Ukraine correspondent, during the meeting, it was reported that between June and August 2025, 77 auctions were successfully held, and 28,200 tons of scrap metal were sold. Currently, 95,500 tons are ready for sale, including 22,600 tons put up for auction. An additional 131,000 tons are being prepared for sale.
Shramko also said that the single price for loading services had been reduced to UAH 1,143,000 including VAT, but now the company is offering scrap metal at a price that varies depending on the loading point and loading method.
At the same time, the price does not currently depend on the type of scrap metal, but this may change in the future.
As reported, in June this year, Ukrzaliznytsia held its first successful online auctions for the sale of scrap metal after a pause of more than a year and a half.
The draft letter from the Ukrainian government to the government of the Republic of Korea regarding the provision of a loan for the implementation of the public investment project “Purchase of 20 Korean-made high-speed electric trains” was approved by the Cabinet of Ministers at its meeting on September 10.
“The signing of the letter will ensure the purchase of 20 high-speed electric trains manufactured in Korea with a preferential loan from the Economic Development and Cooperation Fund (EDCF) to meet the needs of Ukrzaliznytsia JSC in interregional and international passenger transportation,” said Taras Melnychuk, representative of the Cabinet of Ministers in the Verkhovna Rada, on Telegram.
The Verkhovna Rada ratified the Framework Agreement between the governments of Ukraine and the Republic of Korea on loans from the Economic Development and Cooperation Fund for 2024-2029, which opens up the possibility for Ukrzaliznytsia to purchase another 20 Intercity+ class electric trains.
As reported, in August last year, the Verkhovna Rada ratified the Framework Agreement between the governments of Ukraine and the Republic of Korea on loans from the EDCF for 2024-2029, which opens up the possibility for Ukrzaliznytsia (UZ) to purchase another 20 Intercity+ class electric trains manufactured by Hyundai Rotem, in addition to the 10 that were purchased before Euro 2012.
At that time, it was noted that the next steps would include agreeing on the details of the project and the agreement at the level of the Cabinet of Ministers and the final signing of the agreement. According to preliminary agreements, the total cost of the program will be about $450 million, including train maintenance for five years. The trains can be delivered within 18-24 months after the agreement is signed.
According to UZ, the loan terms are favorable given the critical social component of the project (total term of up to 40 years, with principal repayment beginning after the first 10 years). “This is an additional opportunity for 6 million passengers per year to travel, which will meet the current demand for daytime high-speed traffic,” commented Yevgen Lyashchenko, who was the chairman of the company’s board at the time, on the possible purchase.
In August this year, Ukrzaliznytsia announced plans to increase the share of daytime high-speed traffic to 30% in three years and to 40% in five years, while currently it averages 12-15%. An important part of their implementation is the purchase of 20 new Hyundai electric trains.
Later this month, one of the 10 Hyundai trains was taken out of service by a Russian strike.
According to the forecast of JSC “Ukrzaliznytsia”, the losses of the car repair direction of the company may reach 600 million UAH by the end of 2025, said in an exclusive interview to the agency “Interfax-Ukraine” member of the Board, head of the direction “Repair and production” Evgeny Shramko.
The decrease is due to the fall in transportation and, as a consequence, the volume of repairs: transportation by UZ cars fell by 58%, and repairs decreased by 55%.
The main goal of reforming the Repair and Production division at Ukrzaliznytsia JSC is to optimize the business, increase its efficiency, and make it profitable, said Yevhen Shramko, member of the company’s board and head of the division, in an exclusive interview with Interfax-Ukraine.
According to him, the transformation involves consolidating assets, attracting international partners, and implementing projects based on excess capacity through leasing, public-private partnerships, or repurposing.
“Where there is potential, we will strengthen it; where necessary, we will remove the excess. We must find the optimal scale and ensure long-term efficiency,” Shramko emphasized.
During the summer of 2025, Ukrzaliznytsia (UZ) transported 1.6% more passengers than last summer – 8.07 million, with the number of passengers transported in August reaching 2 million 845 thousand people.
According to the company’s Facebook post on Monday, twice as many military personnel and their families were transported through the special reserve – 130,600.
During the summer of 2025, 1.6 times more children’s groups were also transported: 328,000 children with their parents on group applications and 16,243 children with their parents traveled in children’s cars.
“From June to August, Ukrzaliznytsia transported 3,895 passengers to safety from Sumy, Kherson, Dnipropetrovsk, Donetsk, and Zaporizhzhia regions,” Ukrzaliznytsia added.
The company emphasized that despite all the challenges this summer—a critical shortage of cars lost due to shelling and natural aging, a surge in demand during the peak summer season — 39 additional trains and groups of carriages were assigned, which allowed for the transportation of an additional 627,000 passengers and reduced the load on regular routes.
Earlier, Ukrzaliznytsia transported 639,700 passengers between August 18 and 24, which is 0.8% less than a week ago. According to statistics, the total volume of transportation still remained higher than last year: during the reporting week, the excess was 3.9%, or 23,700 passengers. The average number of passengers carried per car from August 18 to 24 was 467, which is 6.4% more than in the same period in 2024.
As reported, in the first half of 2025, Ukrzaliznytsia increased passenger traffic by 1.2% compared to the first half of 2024, to 13.52 million. This is 23% more than in January-June 2023, as previously reported by Ukrzaliznytsia CEO Oleksandr Pertsovskyi on Facebook.
