Ukraine's Ukrzaliznytsia gears up for 2024, prioritizing infrastructure, and financial stability

Ukraine's Ukrzaliznytsia gears up for 2024, prioritizing infrastructure, and financial stability
© Artem Pokhodnyev on Unsplash

Ukrzaliznytsia aims to increase employee salaries, invest in infrastructure, and overcome challenges posed by rising electricity tariffs.

The Cabinet of Ministers of Ukraine has approved the financial plan of JSC "Ukrzaliznytsia" for the year 2024, giving the go-ahead for plans to generate revenues totaling UAH 103.2 billion (€2.62 million). The revenue forecast includes UAH 98.6 billion (€2.5 million) from the sale of products, demonstrating the company's unwavering commitment to economic stability without external budgetary dependence.

Yevhen Liashchenko, Chairman of the Board of Directors of JSC "Ukrzaliznytsia", affirmed that the main focus of the approved plan is to strengthen defense capabilities, maintain uninterrupted passenger and cargo transit, and increase investment in railway infrastructure. In particular, the financial proposal includes an increase in the salaries of railway employees in line with their key role in national defense and economic functionality.

Financial disbursements to state and local budgets are planned to increase by 5% over the previous year to UAH 24 billion (€610.313). Total expenditure is planned at UAH 115.8 billion (€2.95 million), mainly due to a 13% increase in the cost of goods sold to facilitate salary increases and to cope with escalating electricity tariffs. EBITDA profitability is targeted at 12%, with an expected EBITDA of UAH 11.8 billion (€300.070).

Expected revenues from freight and passenger transport in 2024 are estimated at UAH 80.1 billion (€2.03 million) and UAH 9.3 billion (€236.496) respectively. Ukrainian Railways has developed contingency plans to deal with challenges, including port blockades, and aims to standardize tariffs to ensure transparency and alignment with European models. The railway company has also outlined plans for cost optimization measures.

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