Ukrzaliznytsia JSC plans to raise salaries by 10-15% from Sept. 1, prioritizing understaffed professions, affecting more than 150,000 railway employees, Reconstruction, Infrastructure and Transport Minister Mykola Kalashnyk said.
"I met with railway workers a few days ago and discussed this decision directly with staff, Ukrzaliznytsia’s management, the supervisory board and lawmakers," Kalashnyk wrote on Facebook on Friday.
He said the pay rise would primarily target workers who repair locomotives and railcars, restore damaged infrastructure and keep trains running.
Among other things, the infrastructure ministry supports the indexation of Ukrzaliznytsia’s freight tariffs. The next stage is planned for Jan. 1, 2027, which will allow for a continued phased review of salaries next year, the minister said.
The ministry said Ukrzaliznytsia would inform employees of the details of the pay rise shortly.
"We understand this is not an easy decision for business. But the railway needs resources for transport, repairs and recovery after Russian attacks. And, just as importantly, for its people," Kalashnyk said.
As has been reported, changes to freight rail tariffs took effect in Ukraine on Aug. 1, providing for a 30% indexation and the unification of tariffs for transporting empty railcars, which previously depended on what cargo the railcars had carried before.
In January of this year, Ukrzaliznytsia declined to make $45 million in coupon payments on its 2026 eurobonds (8.25% coupon, $703.2 million issue) and its 2028 eurobonds (7.875% coupon, $351.9 million issue), and announced its intention to begin a comprehensive restructuring of its bond obligations with the involvement of financial and legal advisers.
The company cited the ongoing decline in freight revenue amid falling cargo volumes, as well as intensifying attacks on the railway — the total number of which in 2025 (1,195) exceeded the combined figure for 2023-2024 — as the main reasons for halting eurobond debt servicing.
In 2025, Ukrzaliznytsia’s revenue fell 15.6% to $2.189 billion, and EBITDA fell 30.2% to $293 million, of which $270 million came from budget support. Its net debt-to-EBITDA ratio rose to 5.2.
