Ukrainian Railways prepare to postpone payment of $30 million to budget for six months due to coronavirus

Source : 112 Ukraine

Ministry of Infrastructure offered to postpone the deadline for paying dividends to Ukrzaliznytsia from June to late 2020
19:10, 26 June 2020

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Because of Covid-19, Ukrainian Railways (Ukrzaliznytsia) is preparing to transfer payment of $30 million to the budget by the end of this year, the ‘Nashi Groshi (Our Money)’ reports.

"Due to Covid-19, Ukrzaliznytsia is preparing to postpone the payment of $30 million to the budget for six months," the statement said.

Related: 115 Covid-19 cases observed in Kyiv in 24 hours

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.

Related: France, Germany contribute $176 million to WHO amid organization’s conflicts with U.S., China

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.

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