Launch of a State-Ordered Passenger Transport System
The Ukrainian government has approved a plan to allocate 16 billion hryvnias to launch a state-ordered passenger rail service mechanism in 2026. This funding will compensate Ukrzaliznytsia (Ukrainian Railways) for the difference between the actual cost of transportation and the revenue from tickets sold at socially affordable rates. The financing will be provided quarterly in advance and will cover passenger transport services actually performed in January and February 2026.
The Cabinet of Ministers has directed that the funds be allocated from the state reserve fund and has issued the corresponding order. This pilot project is a significant step toward implementing the European model of Public Service Obligation (PSO) for essential transport services in Ukraine.
Deputy Prime Minister for the Restoration of Ukraine, Oleksiy Kubrakov, emphasized that 'it is fundamentally important for the state that rail transport remains accessible to people while also having stable funding.'
He noted that the state order system will help maintain affordable fares and reduce the financial burden on Ukrzaliznytsia. This move is part of broader post-war recovery efforts, aiming to stabilize a critical public service.
Supporting Passenger Transport Services
The mechanism aims to support passenger rail services across the country, ensuring their stability and accessibility for the population.
The introduction of the state order system for passenger transport marks a crucial stage in reforming Ukraine's transport system, designed to adapt it to European standards. This step could positively impact service quality and provide greater financial stability for Ukrzaliznytsia, which in turn would promote the development of domestic transport and reduce costs for the public.