14:53 25.01.2017

PM supports Ukrzaliznytsia head Balczun in conflict with infrastructure minister Omelyan

3 min read
PM supports Ukrzaliznytsia head Balczun in conflict with infrastructure minister Omelyan

Ukrainian Prime Minister Volodymyr Groysman has backed Ukrzaliznytsia Board Chairman Wojciech Balczun in a conflict with Ukrainian Infrastructure Minister Volodymyr Omelyan.

"Leave the conflict at home," he said at a government meeting on Wednesday, urging the officials to work constructively in the infrastructure and transport area.

Omelyan and Balczun exchanged critics of their actions at the posts at the government meeting.

"The increase of profit of Ukrzaliznytsia in 2016 is not a reform achievement. This is simply the increase of the tariff by 15% in 2016 that generated UAH 3.8 billion. Unfortunately, nothing happened with corporatization in 2016, there were no moves," Omelyan said.

He also expressed perplex why Ukrzaliznytsia announced a tender to buy 3,000 gondola cars for UAH 3 billion via Darnytsia wagon repair plant, while the public joint-stock company has own plants that can produce these cars.

"As for staff appointments, they are mad. We have amazing security officers that have been dismissed. We have an interesting appointment in the strategic development department, Mrs. Pushko-Tsybuliak, a famous and iconic figure in Luhansk region. Maybe she won a transparent and honest tender," Omelyan said.

He also said that Ukrzaliznytsia lost a EUR 60 million loan from KfW bank, adding that each credit line is signed under duress.

The minister also criticized the restructuring of the company's debt, bad claim and court work due to which Ukrzaliznytsia lost courts for UAH 2 billion.

"I have a question to Mrs. Balczun: how it is to work with Mr. Mykhalchuk [a board member of the company]? How well does Mr. Dubnevych [head of the parliamentary transport committee] back [the company]?" the minister asked.

Balczun said that he arrived to Ukraine to work using the standards which he got used to.

"I do not feel in comfort in a daily dialog with the minister who helps neither reforms nor Ukraine," he said.

Balczun said that the foreign team of Ukrzaliznytsia had to see the situation in Ukraine in practice.

"I am not responsible for all lost lawsuits worth $360 million that were left for us. They were lost in all court instances. We do not use PR, no matter if you hear it. We are solving concrete problems we have inherited. I did not appoint Mr. Mykhalchuk and other board members. I asked only to appoint two board members – Zalesny and Vasylevsky," the Ukrzaliznytsia head said.

He said that communications with the head of the parliamentary transport committee is natural, as he is responsible for the legislative base upon which Ukrzaliznytsia is operating.

After hearing the two officials, the prime minister asked for records of service of the two for the past five or seven years, and added that the minister unfortunately does not have expert knowledge in the railway sphere.

"I want to say that the minister is an important person who is to help, support and bring to success. The minister cannot afford personal relations with subordinates. It is important for me that Ukrainian railways become successful. As a prime minister I would do everything to make it successful. You can write it down and track it. This should unite us. Maybe one can pick a fight with someone in the minister's office. You should not do this in government. Conflict is not our style," Groysman said.

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