Ukraine is changing its approach to passenger trains - they want to keep ticket prices "affordable"

The government has found a way to "keep tariffs affordable for people" for train tickets and is introducing a new model for ordering passenger rail transportation, under which the state will compensate the difference between the cost of transportation and current tariffs, Ukrzaliznytsia JSC reported on February 19, writes UNN.

Details

The Cabinet of Ministers, as noted, "adopted a decision to launch an experimental mechanism of state order for domestic passenger transportation by rail (long-distance communication)."

"On average, the actual cost of a trip is more than 3 times higher than the ticket price in domestic traffic, because passenger rail transportation remains as accessible as possible for everyone. This is extremely important in the conditions of martial law," Ukrzaliznytsia noted.

What will change?

"From now on, as it is organized in most European countries, the state will systematically compensate the railway carrier for the difference between the real cost of transportation and current tariffs," Ukrzaliznytsia emphasized.

"The railway in Ukraine is critically important transport for millions of Ukrainians. And the state's task is to ensure that train traffic is stable and predictable, and transportation remains accessible to people. That is why we have developed a mechanism that brings the Ukrainian system closer to the European model of ordering socially important transport services," said Deputy Prime Minister for Reconstruction - Minister for Communities and Territories Development Oleksiy Kuleba.

As reported, "in 2026, the state order for passenger transportation amounts to UAH 16 billion." "This amount covers all main directions where it is currently possible to travel by rail. By ordering transportation services, the state will also control the full implementation of this order," Ukrzaliznytsia noted.

Why is this needed?

Ukrzaliznytsia stated that the new model is necessary to:

• "make financing transparent and predictable";
• "reduce the financial burden on the carrier";
• "keep tariffs affordable for people and stable train traffic across the country."

"This is also a step towards the European PSO (Public Service Obligation) model, which is widely used in European Union countries - when the state directly orders and pays for socially important transport services," Ukrzaliznytsia noted.

Addition

Against the backdrop of the new IMF program for Ukraine being backed by a so-called debt sustainability analysis, government commissioner for public debt management Yuriy Butsa stated that the government will also not be able to provide "guarantees" to help state-owned companies such as Ukrzaliznytsia and Naftogaz in restructuring their debts.