Ukrainian Railways asks $269,6 million from state budget

Source : 112 Ukraine

The funds should be spent on the purchase of new rolling stock
15:01, 16 May 2019

Kravtsov Evgen Facebook

Ukrzaliznytsia appealed to the Verkhovna Rada and the Cabinet of Ministers with the request to allocate $269,6 million as state support of the rail transport, as the company reported.

It is specified in the appeal sent by the company to the parliament and government that the allocation of the funds from the budget is provided by Article 9, 10 of Ukraine’s law “On rail transport.”

“From $269,6 million which we request, $83,4 million is not provided compensation for transportation of categories of passenger paying reduced fares in 2016-2018 and $185,9 million of capital costs for passengers’ transportation, which were carried by  Ukrzaliznytsia during 2016-2018 due to the non-fulfillment of Article 10 of Ukraine’s law “On rail transport”,” the message said.

Related: Ukrainian railways Ukrzaliznytsia might cause economic slowdown by raising tarifs

The leadership of the company notes that over 60 passenger locomotives 250 passenger coaches or 15 new 10-wagons elevated train can be bought for these funds.

Earlier, the National Anti-Corruption Bureau (NABU) finished investigations on the embezzlement at PJSC Ukrzaliznytsya in the amount of 3.7 million dollars. 

According to the report, suspects during December 2015 - March 2017 arranged the purchase of PJSC Ukrzaliznytsya of articulated products overpriced with the involvement of controlled intermediary companies and thus seized the funds of the branch Center for production of PJSC Ukrzaliznytsia in the amount about of 3.7 million dollars.

Related: Ukrzaliznytsia risks to lose $145-181 million until end of 2018

NABU detectives launched the investigation in June 2017.

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