On the Large-Scale Reform of Ukraine’s Railway Sector

As previously reported (see the information in the “News” section dated May 15, 2026), the Committee of the Verkhovna Rada of Ukraine on Transport and Infrastructure, at its meeting on May 13 this year, recommended that the Verkhovna Rada adopt the draft Law “On the Safety and Interoperability of Railway Transport of Ukraine” (Reg. No. 14174 dated October 31, 2025) at second reading and in its entirety, subject to the necessary technical and legal amendments.

For many years, Ukraine’s railway sector remained one of the most outdated industries, regulated by provisions largely inherited from the Soviet system. At the same time, commitments under the Ukraine Facility programme have placed an unavoidable requirement on the state — full technical and regulatory integration into the Single European Railway Area.

This draft law is one of the most extensive and technically complex legislative documents. Its objective is to implement EU Directives 2012/34, 2016/797, and 2016/798 to facilitate Ukraine’s integration into the Single European Railway Area.

The draft law provides for a clear delineation of railway market participants, regarded as a necessary prerequisite for establishing a competitive environment. The document defines the key categories of entities that will operate in the railway transport sector.

In particular, the infrastructure operator is defined as a legal entity wholly owned by the state, which will be responsible for the management and operation of the public railway infrastructure.

The legislation also provides for the activity of a siding operator responsible for operating railway tracks connecting enterprises to the public railway network.

The draft law additionally:

– introduces a Safety Management System (SMS). The document stipulates that each infrastructure operator and railway undertaking must not only formally approve such a system but also effectively implement it in practice. Sector participants will be required to submit annual safety reports to the supervisory authority, which is expected to strengthen state oversight in the field of railway safety;

– provides for the establishment of a National Transport Accident Investigation Bureau. This body will have the authority to access accident sites without restriction, examine “black boxes,” and remove debris for analysis;

– comprehensively regulates access to the profession of train driver and introduces new qualification requirements for railway transport specialists. A separate innovation is the creation of a state register of issued train driver licences, intended to ensure transparency in access to the profession and strengthen oversight of workforce qualifications in the sector;

– for the first time at the legislative level, establishes the status of an entity in charge of maintenance (ECM). Such an entity must hold a designation certificate and be included in a dedicated register. This constitutes a direct implementation of European regulations, ensuring that rolling stock condition is monitored not only by the owner but also by a certified organisation bearing legal responsibility for maintenance quality.

If adopted, the draft law envisages a three-year transition period during which the railway transport market is expected to gradually transform and adapt to European operational standards.

For more detailed information, as well as an assessment of the risks associated with this draft law, see the article “Ukraine Prepares a Large-Scale Railway Reform: Despite Reservations, the Committee Supported Integration into the European Railway Area”, published on May 18, 2026, in the Judicial and Legal Newspaper (SUD.UA), a leading source of legal news in Ukraine specialising in judicial practice, legislative developments, and legal affairs.

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