Government approves Ukrzaliznytsia fiscal plan for 2015 with UAH 2 bln expenditure

The Cabinet of Ministers at a meeting on July 22 approved the financial plan of State Railways Administration of Ukraine Ukrzaliznytsia for 2015 with capital expenditure of UAH 2 billion.

"The approval of the financial plan will allow [Ukrzaliznytsia] to begin funding capital expenditures, including those providing coal exports from Donbas," Deputy Prime Minister Valeriy Voschevsky told reporters.

He did not mention the size of the expected loss or profit, noting that freight traffic for Ukrzaliznytsia is usually profitable and that passenger transport is usually unprofitable. As a result, he said the financial plan for 2015 give a figure of "close to zero."

Ukraine's Minister of Infrastructure Andriy Pyvovarsky said that according to the financial plan, the net loss of Ukrainian railways is expected to reach UAH 47 million in 2015.

As reported, the financial plan of Ukrzaliznytsia for 2015 foresees additional revenues from freight traffic in the amount exceeding UAH 7.4 billion, from passenger traffic – UAH 251 million.