The government allocated 16 billion to Ukrzaliznytsia: what costs passengers four times more

According to hvylya.net: The government of Ukraine has allocated about 16 billion hryvnias to stabilize the finances of the Ukrainian railway carrier. This was announced by Prime Minister Yulia Svyrydenko during a press conference.

According to the Prime Minister, all these funds will go towards covering the difference between ticket prices and their cost. 'The total amount of 16 billion is simply an attempt to avoid losses and maintain stability in passenger transportation,' Svyrydenko said.

It was noted that the Ukrainian railway is facing problems due to losses in freight transportation of metallurgical products and coal. It was also noted that passenger services bring significant profits; however, total costs exceed the profits. The state has already compensated part of the difference, but Ukrzaliznytsia will need to effectively optimize its expenses for a comprehensive solution to the problems.