PSO-2027 for UZ below UAH 20 bln or unresolved eurobonds would trigger tough action package – supervisory board member
Ukrzaliznytsia could avoid a tough package of measures if the 2027 state budget provides the company with at least UAH 20 billion in PSO funding, plus additional payments for 2026 PSO obligations, if the eurobond default is resolved through restructuring, and if the cash gap stays within UAH 26 billion, company supervisory board member Anatoliy Amelin said.
Ukrzaliznytsia, the state-owned railway company, could potentially avoid a severe package of measures if certain conditions are met in the 2027 state budget. According to Anatoliy Amelin, a supervisory board member of Ukrzaliznytsia, the budget must provide at least UAH 20 billion in PSO funding, cover additional payments for 2026 PSO obligations, resolve eurobond defaults through restructuring, and keep the cash gap below UAH 26 billion.
If any of these conditions are not met, the company would face consequences such as laying off 15-20% of its workforce, closing loss-making routes, freezing CAPEX (excluding safety-related investments), and accelerating asset sales. The report from the Ukrainian Institute for the Future suggests that budget support for Ukrzaliznytsia at UAH 16 billion this year would reduce the annual loss to UAH 6.1 billion, while raising PSO funding to UAH 24 billion would bring the loss within UAH 5.1 billion.
The report also emphasizes the need to calculate the 2027 PSO amount using the cost of the state order minus tariff revenue and proposes additional payments for 2026, prepaid regional contracts for suburban rail services, and a 25% cut to administrative staff.
Written by urgent.news from Interfax-Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
