Business news from Ukraine

UKRZALIZNYTSIA PROPOSES TO SIGN COMPANY LONG-TERM PRICE POLICY AGREEMENT TO BUSINESSMEN

3 February , 2017  

KYIV. Feb 3 (Interfax-Ukraine) – Public joint-stock company Ukrzaliznytsia has proposed to business to sign the company long-term price policy agreement, Ukrzaliznytsia Board Chairman Wojciech Balczun said when discussing a draft order of the Infrastructure Ministry to increase freight transportation tariffs by 25% at the State Regulatory Service on Thursday.

“We propose to sit and sign the agreement on the long-term price policy at Ukrzaliznytsia. The market would be able to plan. I absolutely support the expansion of our prospects for more than one year. Ukrzaliznytsia has never had a long-term strategy. The financial plans are drawn up only for one year. We can sign contracts only for one year. Tell this to Germans who sign contracts for 15 years… Now we should hold a tender to buy rolling stock during three years as we did it in Poland. I cannot do this, as even the financial plan for 2017 has not yet been approved,” he said.

Business representatives criticized the draft order to increase the tariffs during the discussion. The decision would affect both Ukrzaliznytsia due to a fall in the volume of transportation and the Ukrainian economy. They voiced support to strengthening transparency in spending the funds of the company, increasing efficiency of its operations and rational use of funds.

After the discussion the State Regulatory Service refused to approve the draft order and decided to create a working group jointly with business to set a compromise tariff.