Minister: Ukrainian Railways became a public joint stock company

KIEV, October 21. Ukraine is a public joint stock company “Ukrainian railway”. This was announced by the Minister of infrastructure Andriy Pivovarsky.

“Only that registered legal entity – public joint-stock company “Ukrainian Railways”, – he wrote on his page on the social network Facebook.

Previously it was the body of the railway transport management under the Ministry of infrastructure (State administration of railway transport of Ukraine “Ukrzaliznytsia”), in the management of which was the railway of the country in the form of separate enterprises. So, through the merger of the “Ukrainian Railways”, the six Railways, enterprises, institutions and organizations of railway transport is a public joint stock company – one of vertically integrated economic structure with the absolute state capital, it is prohibited to alienate.

Brewer claims that now “Ukrzaliznytsya” will be a competitive and profitable enterprise, will pay dividends to the state, to make timely payments to creditors and to provide the best working conditions for the staff”.

Having become a joint stock company Ukraine joined the international experience, both in the form of a joint stock company operated the Railways of Russia, Germany, Poland and other countries.

The reform of “Ukrzaliznytsia” was launched in 2014, is not yet completed. “Still need to adopt a new law on railway transport, the new law on the national Commission of regulation of transport and then change about 50 by-laws. The reform process will last several years,” brewer explained earlier.

Among other things, in the Ministry of infrastructure plans to allow the private traction on the market. The office noted that this will be possible only after a two-year transition period that must pass since the entry into force of the new law “On railway transport”. “That is, private companies will get the opportunity to buy new rolling stock and to operate it, so it will be updated,” said brewer.

Experts believe that it is a very negative initiative, since private businesses will pick the most attractive activities of “Ukrzaliznytsya”, and those that will remain with the state, will be deeply unprofitable.

In addition, repeatedly raised the issue of the termination of the subsidy of passenger transportation. Thus, the reform provides for the introduction of social order such shipments, that is, the costs of transportation of privileged categories of the population will be divided between the state and local authorities after decentralisation will have more funds in your budget. In this case, officials contend that a social order does not automatically change the value of the tickets.