Photo: Ukrzaliznytsia

Ukrzaliznytsia has announced plans to restructure its $1 billion in Eurobonds. To this end, the company will launch a tender to hire an international legal advisor, according to its statement on August 8.

Without a successful renegotiation of the repayment terms, Ukrzaliznytsia risks defaulting—a scenario that could disrupt rail transportation across the country and cut the company off from future access to international financing.

Disable ads
Disable ads
Read also
Cargo volumes are falling, while passengers are eating up profits. Why Ukrzaliznytsia is unprofitable

"We are dealing with debt that has been accumulating since 2012. To address it, we’re engaging the most professional financial and legal team to ensure the interests of both Ukrzaliznytsia and the state are protected," said Oleksandr Pertsovskyi, Chairman of the Board at Ukrzaliznytsia.

The company currently has two outstanding Eurobond issues: one maturing in July 2026 and another in July 2028.

In December 2022, Ukrzaliznytsia restructured these liabilities, securing a two-year deferral of principal repayments and a postponement of coupon payments.

Following that transaction—finalized in January 2025—the outstanding principal was $703.2 million due in 2026 and $351.9 million due in 2028. The company’s debt burden now represents roughly 15% of its total assets.

In December 2024, Ukrzaliznytsia requested another payment deferral from bondholders, but the proposal was rejected. Since then, the company has made two coupon payments, the most recent one in July.

  • In early August 2025, Pertsovskyi said that Ukrzaliznytsia aims to enter the EU passenger transport market in the future as a low-cost carrier.