Poroshenko's decree bans operations of Russia's Freight One and its Ukrainian subsidiary in Ukraine
The Ukrainian economic sanctions have affected Russia's biggest railway operator JSC Freight One (Moscow) and its 100% Ukrainian subsidiary LLC Freight One (Kyiv).
"The complete termination of the transit of resources and transportation in the territory of Ukraine," is the sanction applied to them by September 16 decree of Ukrainian President Petro Poroshenko №549 enforcing resolution of the National Security and Defense Council dated September 2, 2015, on the application of personal special economic and other restrictive measures (sanctions).
LLC Freight One in Ukraine was founded in 2008. According to information on its website, the company operates more than 5,000 railcars of Freight One and also its own fleet of 495 gondola cars and 110 tank cars.
"The balanced client portfolio of Freight One in Ukraine has more than 50 companies, 20% of which are leading sector enterprises of Ukraine. The company is providing the needs of the largest companies of the coal and metallurgical, construction, chemical and other sectors for the transportation of cargo on export, import and transit routes," the LLC said on its website.
The net income of Freight One in Ukraine in 2013 fell by 17.9% to UAH 154.12 million, and net profit fell by 43.8% to UAH 47.13 million. There is no data for 2014.
Freight One is Russia's largest rail freight operator. Besides Russia and Ukraine, the operator works in Kazakhstan, has a joint venture with Finnish railways. Freight One is part of UCL Rail, the rail division of Vladimir Lisin's Universal Cargo Logistics Holding (UCL Holding). UCL Rail owns about 200,000 freight cars of different types, most of which are gondola cars. Besides railway assets, it includes stevedoring companies in the northwest and south of the country and large Russian shipping companies.