The head of the EBRD commented on the UZ-3000 program: It will not improve the company's financial condition

Odile Renaud-Basso, President of the European Bank for Reconstruction and Development (EBRD), commented on the impact of the free rail transport program UZ-3000 on the financial condition of Ukrzaliznytsia. Ukrainian Railways. According to her, this initiative will not improve the company's situation, which needs a medium-term plan. She said this stated in an interview with EP.

"This decision will not improve the financial situation," said Renaud-Basso, commenting on the Ukrainian government's program that allows citizens to use Ukrzaliznytsia's services free of charge.

The head of the EBRD emphasized the need for a dialogue with the state railway carrier regarding its future. "I think it's important to discuss a medium-term plan with Ukrzaliznytsia on how this situation will develop further and how they can improve their financial situation," she explained.

As a creditor of Ukrzaliznytsia, the EBRD considers freight tariffs and passenger fares to be key elements for balancing the company's financial performance.

"Instead of cross-subsidization, it is sometimes useful to move to cost recovery, where customers pay for services, but they can receive targeted support from the budget, specifically for the most vulnerable segments of the population. This can be a more effective solution," suggested the EBRD President.

According to her, the bank is continuing negotiations with Ukrzaliznytsia regarding the company's strategy. "We need to learn about their strategy and make sure that the company is able to repay us," concluded Reno-Basso.

• The last two years Ukrzaliznytsia is operating at a loss. due to the reduction in freight traffic. Passenger transportation is not profitable for the company., with the exception of a small number of international routes.
• On November 1, the president Volodymyr Zelenskyy announced the preparation of a large-scale package winter support for citizens, which will include free train travel.
• Ukrzaliznytsia commented on the UZ-3000 program, stating that it will help relieve peak loads and stimulate travel during off-peak periods.
• On November 7, it became known that UZ-3000 program, under which Ukrainians will receive 3,000 km of free travel by Ukrzaliznytsia, should start working from December 1.