Leshchenko in parliament: UZ’s reserves depleted, freight rate hikes inevitable

Ukrzaliznytsia expects to post billions in losses in 2025 and plans to raise freight rates in 2026, Serhiy Leshchenko, Deputy Head of the Supervisory Board, told members of the Verkhovna Rada on Wednesday.

"Ukrzaliznytsia’s internal resources to offset passenger transport losses have been exhausted. Unless measures are taken, we risk losing the company," Leshchenko said, noting that UZ recorded a net loss of almost UAH 7.2 billion in the first nine months of 2025.

Historically, the company has compensated for losses from passenger transportation with freight transportation, but this system no longer works due to the full-scale war.

"This year we have lost the entire industry in Donetsk region. The last mine, Belozerskaya, has also been shut down. Mining and processing plants are shutting down because of the war, and therefore, to compensate for the losses, we need the help of Ukrainian taxpayers," Leshchenko said .

According to him, Ukrzaliznytsia sees three ways to improve its financial condition.

The first is the internal optimization of Ukrzaliznytsia, in particular through the sale of scrap metal (UAH 10 billion).

The second is direct state funding of UAH 16 billion to compensate for losses from passenger transportation.

"And the third thing is that indexation of freight tariffs cannot be avoided, but it should be done gradually to avoid shocks to the industry," Leshchenko said. According to him, the indexation could bring the company UAH 22 billion if it is done in two stages – from January 1 by 27.5% and from July 1 by 11%.

UZ also plans to increase dynamic pricing for the most expensive passenger tickets – in the SV and first class of the Intercity.

At the same time, Leshchenko emphasized that the losses do not prevent the company from allocating seats for free travel within the program UZ-3000 announced by President Volodymyr Zelenskyy.

"Covering losses with budgetary funds does not apply to the UZ-3000 program. On the one hand, there is funding to cover chronic passenger losses, and on the other hand, there is an unused railroad resource, which in some months amounts to almost 700,000 seats. In general, there is a readiness to allocate 200,000 to 250,000 passenger seats for free travel during off-peak periods without any problems," Leshchenko said.