"Due to Covid-19, Ukrzaliznytsia is preparing to postpone the payment of $30 million to the budget for six months," the statement said.
The explanatory note of the Ministry of Infrastructure indicated that due to the spread of Covid-19 disease with the subsequent introduction of a quarantine government, "Ukrzaliznytsia will have a negative impact on net profit of up to $37 million."
To overcome the crisis, Ukrzaliznytsia introduced a number of measures, in particular, an idle time for staff, and refused to raise salaries, limited the purchase of material and technical resources, reduced capital investments, limited fuel consumption and more. But the financial plan of Ukrzaliznytsia for the current year has not been approved.
Therefore, the Ministry of Infrastructure proposed to delay the payment of dividends by amending legislation. The ministry assures that these are temporary measures, and they also suggested not paying penalties on unpaid dividends.
Given the agreed positions, the Ministry of Finance and the Ministry of Justice indicated that the Commercial Code prohibits state authorities from providing a privileged position to any enterprise and violating competition rules. But these comments were not supported. Relevant amendments to the Law "On the Management of State Property" prepared by the Ministry were approved at a government meeting on June 25.
As we reported before, Ukrzaliznytsia (Ukrainian Railways) returned $5 million to passengers for train tickets that were canceled due to lockdown in Ukraine.