2020-01-30T18:58:00+02:00 Economy 2024-06-15T08:28:53+03:00

Ukrainian news

Memorandum Signed By Infrastructure Ministry And Deutsche Bahn Involves No Remuneration For German Company

Memorandum Signed By Infrastructure Ministry And Deutsche Bahn Involves No Remuneration For German Company

The memorandum that was signed by the Ukrainian Ministry of Infrastructure and the Deutsche Bahn railway company (Germany) does not provide for remuneration of the German company.

The Ministry of Infrastructure announced this in a statement in response to an information request from the Ukrainian News Agency.

According to the text of the memorandum, the two parties agreed to explore the possibility of creating a strategic alliance between the Ukrzaliznytsia joint-stock company and Deutsche Bahn with the aim of sharing experience between the companies.

The memorandum also provides for assessment of the possibility of cooperation with the aim of implementing the European experience in reforming the rail transportation sector.

Minister of Infrastructure Vladyslav Kryklii signed the memorandum on behalf of Ukraine and the head of Deutsche Bahn’s external relations department signed it on behalf of the German company.

As Ukrainian News Agency earlier reported, the Ministry of Infrastructure signed a memorandum of cooperation with Deutsche Bahn in Davos (Switzerland) on January 22.

Prime Minister Oleksii Honcharuk later said that the Cabinet of Ministers intended to transfer Ukrzaliznytsia to Deutsche Bahn.

However, the German company said that it only intended to provide technical and business consultations to Ukrzaliznytsia.

Ukrzaliznytsia’s net profit increased by UAH 89.9 million or 78% to UAH 203.9 million and its revenue by 12.8% to UAH 83.4 billion in 2018, compared with UAH 114 million in 2017.

Ukrzaliznytsia began commercial operations as a public joint-stock company on December 1, 2015.

Ukrzaliznytsia operates the Donetsk, Lviv, Odesa, Southern, Southwestern, and Prydniprovskyi railways, as well as other enterprises and organizations facilitating transportation of freight and passengers.