The government is continuing its work on a systematic upgrade of Ukrzaliznytsia’s rolling stock, Ukrainian Prime Minister Yulia Svyrydenko announced.
“As part of this upgrade, 100 new Ukrainian-made cars are to be delivered—including compartment cars, accessible cars, and new-generation cars with a service life extended by 20 years. The total cost of the project is approximately 6.5 billion UAH. Delivery will take place in phases through May 2028,” Svyrydenko wrote on her Telegram channel.
The first new cars are already carrying passengers as part of the flagship train that Ukrzaliznytsia will launch on Tuesday, April 28.
“Over 150 Ukrainian enterprises, including those near the front lines and relocated ones, are involved in the production, which I had the opportunity to tour last October. This provides jobs for over 10,000 Ukrainians and supports the national economy. The product, manufactured in Ukraine, benefits the domestic economy and logistics—going straight from the factory to the tracks,” the prime minister added.
She noted that the new railcars meet modern comfort standards: they feature improved shelves, air conditioning, changing tables and baby playpens, ramps, and upgraded batteries that allow the temperature to be set in advance before passengers board.
Ukrzaliznytsia plans to receive its first Alstom UA8AC electric locomotive in the first quarter of 2027, and by the end of 2029, the company expects to receive a total of 55 such locomotives, said Volodymyr Shemaiev, director of the international projects office at Ukrzaliznytsia.
“This will be a modest overhaul of the freight electric locomotive fleet, which will serve as a foundation for the fleet in the coming years,” Shemaev noted during the 8th International Conference “Railways of Ukraine: Development and Investment” in Kyiv.
Oleksiy Balesta, Deputy Minister of Community and Territorial Development, reported at the conference that since the start of Russia’s full-scale invasion, more than 300 locomotives have been damaged, with about 50 destroyed beyond repair.
According to Ukrzaliznytsia, 9 diesel locomotives were damaged in the first half of 2025, 119 in the second half, and 81 in the first quarter of 2026.
As previously reported, Ukrzaliznytsia signed a EUR473 million contract with Alstom Transport following an international tender organized by the World Bank. The European Bank for Reconstruction and Development subsequently joined the project.
Among other international projects that Ukrzaliznytsia plans to implement, he mentioned the cooperation agreement signed between the governments of Ukraine and Spain regarding the creation of a gauge-changing bogie capable of changing track gauge without stopping. According to him, the first stage involves developing design documentation for such a bogie.
“In about two years, such a bogie will be manufactured in Ukraine, after which testing will begin. If the results of these tests are positive, we can then discuss the commercial production of such bogies and, accordingly, railcars, both for the Ukrainian market and for European markets,” noted the director of Ukrzaliznytsia’s International Projects Office.
Shemaev also reported that a meeting was recently held with Korean partners, with whom Ukrzaliznytsia plans to prepare a feasibility study over the next three years for a high-speed railway from Kyiv to Lviv and onward to the Polish border.
Separately, the director of Ukrzaliznytsia’s International Projects Office told Interfax-Ukraine that Ukrzaliznytsia has joined a project to build decentralized gas-fired power generation facilities at the government’s request. Specifically, 40 MW of equipment has already been delivered, and preparatory work for its installation is currently underway.
In addition, a tender under the rules of the European Bank for Reconstruction and Development (EBRD) for an additional 160 MW has been completed; its results are in the process of being signed, and equipment delivery is expected within 8 months.
Shemaev noted that Ukrzaliznytsia is implementing this project in partnership with the EBRD and the European Commission; it is supported by a EUR41 million grant, with an additional 20 million pounds worth of equipment provided by the United Kingdom.
Starting April 25, Ukrzaliznytsia will begin selling tickets for “luxury” class cars based on new pricing factors—ticket prices will be adjusted according to four factors.
As reported on Ukrzaliznytsia’s Telegram channel on Saturday, these changes will apply exclusively to travel in SV (luxury) and first-class cars on domestic Intercity trains.
“Dynamic pricing for tickets in the premium segment—the relevant order has passed public review and is taking effect. Ticket sales based on the new coefficients will begin on April 25. The indexation of fares in SV (luxury) cars on international trains has also been approved,” according to a statement from Ukrzaliznytsia.
To improve seat availability—which is especially important during the peak season, which is just around the corner—ticket prices in the premium segment will be flexibly adjusted based on four factors:
1. Seasonality. During periods when trains are only 70–80% full, tickets will be cheaper. And during peak months, such as August, when demand is highest, the price will be higher. In total, there will be 16 seasonality zones reflecting the current calendar of holidays, vacations, etc. This will help passengers choose more cost-effective travel times, improve seat availability during peak periods, and increase train occupancy during off-peak periods.
2. Day of the week. The lowest prices will be on Tuesdays and Wednesdays, and the highest when the travel date falls on Fridays and Sundays, when demand is highest. Passengers who can change their travel date will have an additional incentive to do so, and their seats will become available for others on the most popular days.
3. Advance Purchase. The number of days before the train’s departure for which a ticket is purchased. Today, nearly 30% of passengers buy tickets on the day of travel or two days before. The new approach will encourage planning trips in advance and buying tickets at a better price. This will allow for the most efficient use of rolling stock.
4. Occupancy. If a train is 90–100% full, the price may be higher. But if there are still empty seats before departure, the price will decrease. This will allow passengers who would otherwise choose a different travel class to travel in first class or SV at a more affordable price. Implementing this mechanism requires further development of IT systems and will be implemented separately.
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.”
