JSC Ukrzaliznytsia: Freight Tariffs Need to Increase by 45%

Joint Stock Company Ukrzaliznytsia considers it necessary to increase freight transportation tariffs by at least 45% in order to stabilize the company’s financial position amid rising war-related costs and to continue negotiations on debt restructuring.

According to Oleksandr Pertsovskyi, Chairman of the Management Board of JSC Ukrzaliznytsia, the company can no longer absorb the costs of other sectors of the economy at its own expense.

He stated that a 45% tariff increase would cover approximately half of the projected cash deficit, which is estimated at UAH 26 billion this year.

He added that tariff indexation is important not only for maintaining the company’s current liquidity but also for negotiations with bondholders regarding debt restructuring and securing new financing.

At present, JSC Ukrzaliznytsia has not yet reached an agreement with creditors on the restructuring of more than USD 1 billion in debt. However, the company plans to resume negotiations with a new proposal by July of this year.

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