JSC “Ukrzaliznytsia” will receive 16 billion UAH to compensate for expenses related to passenger transport in 2026. This was announced by the Vice Prime Minister for Reconstruction, Minister of Community and Territorial Development of Ukraine, Oleksii Kuleba.
This is reported by Finway
State Support for Railway Transport
The allocated funds are provided within the framework of the state order for passenger transport in the economic segment. According to Kuleba, the implementation of this project follows the model of European approaches to financing socially important transport services.
“Passenger transport is systematically unprofitable not only in Ukraine but also in most European countries. That is why states systematically subsidize this area as a socially important service,” he explained.
Cost of Transport and New Financing Model
In Ukraine, the average cost of railway passenger transport exceeds the current fare by more than three times. State support is intended to ensure the accessibility of railway transport for citizens and to keep ticket prices unchanged for passengers.
In 2026, the 16 billion UAH allocated under the state order will cover all domestic long-distance passenger transport in the economic segment. This will reduce the financial burden on “Ukrzaliznytsia” and create conditions for a gradual transition to a transparent financing model without cross-subsidization between different types of activities of the enterprise. This approach aligns with modern European standards for organizing transport services.