Economy 2023-07-15T06:04:44+03:00
Ukrainian news
Zelenskyy Calls Ukrzaliznytsia Bankrupt, Urges Company To Start Cooperation With Private Investors

Zelenskyy Calls Ukrzaliznytsia Bankrupt, Urges Company To Start Cooperation With Private Investors

President, bankrupt, Ukrzaliznytsia, Volodymyr Zelenskyy, press conference of Zelenskyy

President Volodymyr Zelenskyy has called the Ukrzaliznytsia joint-stock company bankrupt and urged the company to start cooperation with private investors.

He announced this during a press conference, Ukrainian News Agency reports.

One of the reasons for the bankruptcy, according to the President, was the embezzlement of Ukrzaliznytsia's funds by the company's management.

"Problem No. 1 at this enterprise is fraud, the management of these enterprises. This even may be not the management, it may be the middle link (of the company), even lower. At all levels, money was stolen, I believe, in Ukrzaliznytsia, because the enterprise cannot be almost bankrupt only because Ukrzaliznytsia subsidizes (train tickets)," he said.

He also noted that the bankruptcy of Ukrzaliznytsia occurred due to the presence of a large debt of the company on loans.

"Nevertheless, the bankruptcy of Ukrzaliznytsia is associated, for example, with such a reason. Did you know that Ukrzaliznytsia has a loan debt of hundreds of millions of dollars? They took loans (in the amount of) 100-200 million dollars at 10-12%. That is, this or that gasket between the bank and Ukrzaliznytsia earned on it... Therefore, one of the reasons for the bankruptcy of Ukrzaliznytsia is that loans with a very high rate have been accumulated," he said.

Besides, Zelenskyy noted that at the moment Ukrzaliznytsia should begin considering partnerships with private investors, since it will be difficult for the company without them.

The President also said that measures are now being taken to dismiss the current leadership of Ukrzaliznytsia; layoffs, according to Zelenskyy, will be carried out until such time as such a leader is appointed who will change all the links of the company.

As Ukrainian News Agency earlier reported, on March 17, the Cabinet of Ministers dismissed Volodymyr Zhmak as the chairman of the board of the Ukrzaliznytsia joint-stock company and appointed Ivan Yuryk as the provisional chairman of the company's board.

Ukrzaliznytsia ended 2020 with a loss of UAH 11.5 billion, while in 2021 the company plans to make a profit of UAH 3.5 billion.

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