The European Business Association has initiated a proposal to the Ukrainian government regarding the necessity to allocate funds in the state budget for 2026 for direct subsidies for passenger transport by Ukrzaliznytsia. The organization emphasizes that the unprofitability of this segment remains an unresolved issue for many years.
This is reported by Finway
Passenger Transport Losses Are Increasing
According to the Association, in 2024, the company’s losses from passenger transport exceeded ₴18 billion. For 2025, an even greater deficit is projected—over ₴22 billion, despite a state compensation of ₴4.3 billion. At the same time, the income generated from passenger transport covers only about 40% of the total costs for this segment.
The Need for a Change in Funding Approaches
Currently, the losses from passenger transport are covered by profits from freight transport. Business representatives consider this approach ineffective, as cross-subsidization contradicts European standards and hinders the development of railway infrastructure in Ukraine. In particular, shifting the financial burden onto freight owners reduces their competitiveness and restrains freight volumes.
“In the European Union, the passenger and freight segments operate separately, without cross-financing.”
The business community is convinced that implementing direct state subsidies will create a more transparent and effective model for financing railway transport, bringing Ukraine closer to European standards.