Ukrzaliznytsia supports government's plans to split the company into 3 parts

Ukrzaliznytsia supports the government's plans to split the company into 3 parts

Ukrzaliznytsia head Yehven Kravtsov said he supports the government's and the Office of the President's plans to reform the state company. The reform, among other things, foresees dividing UZ into 3 parts.

Kravtsov said this on his Facebook page. The head of the state company also said he will carry out the president's directive on time and develop a restructuring plan for the “enterprise.” “We will complete Volodymyr Zelensky’s directive on time,” Kravtsov said.

According to him, the model that envisages splitting Ukrzaliznytsia into three parts — infrastructure, freight, and passenger — was approved by the previous government of Volodymyr Groysman, under whose authority UZ operated. “The key point is that infrastructure remains under state regulation, while passenger and freight transport operate on market terms. All these basic elements are part of UZ's Strategy,” Kravtsov added.

He also emphasized that implementing the reform of Ukrzaliznytsia is impossible without state funding for passenger transport and assistance in resolving social issues that will arise during the company's restructuring. 2 September Volodymyr Zelensky instructed that a restructuring plan for Ukrzaliznytsia be developed by the end of 2019 year. Recall that Prime Minister of Ukraine Oleksiy Honcharuk proposed splitting Ukrzaliznytsia into 3 companies, 2 of which would be privatized. Under the prime minister’s plan, only the railway track would remain in state ownership. Earlier, Ukrzaliznytsia head Yehven Kravtsov proposed selling part of Ukrzaliznytsia’s shares to private companies to attract investment.