17:12 06.06.2022

Ukrzaliznytsia to post loss over year due to freight traffic cut, numerous evacuation runs - supervisory board member

2 min read
Ukrzaliznytsia to post loss over year due to freight traffic cut, numerous evacuation runs - supervisory board member

Ukrzaliznytsia will post a loss over the year due to a reduction in freight traffic and a large number of evacuation runs, Serhiy Leschenko, an adviser to the head of the President's Office and a member of the Supervisory Board of Ukrzaliznytsia, has said.

"The company will end the year with a loss because it is deprived of access to profits. And the profit is freight traffic, which is provided by cargoes of iron ore and grain ... to ports. Ports do not function, respectively, the traffic has fallen significantly ... We ended 2021 with a profit of UAH 500 million, for this year we had plans for UAH 2 billion, thinking that it would go on as usual: increasing transportation, reforming. The first month ended with a profit, until February 24, the profit accumulated. But, of course, after February 24, losses are measured by quite large numbers," Leschenko said on the 24 TV Channel on Monday.

According to him, the damage caused to the company since the beginning of the active phase of the war is quite large, but voicing the figure means creating additional pressure on the company.

"The amount of damage is explained by the fact that freight traffic is decreasing, and passenger traffic during the first months of the war was free as evacuation runs," Leschenko explained.

He also stressed that since Ukrzaliznytsia is the national carrier carrying out a large number of cargo transportation in the country, the company will not be left without state support.

As reported, Ukrzaliznytsia notes a number of problems on the part of the transport system of European countries, which hinder the increase in the volume of cargo transportation by rail from Ukraine to Europe.

AD
AD
AD
AD
AD