EBRD Calls for a New Business Model for JSC Ukrainian Railways and the Indexation of Freight Tariffs

On 25–26 June 2026, the Ukraine Recovery Conference (URC 2026) was held in Gdańsk, Poland. The event brought together more than 4,000 participants, including heads of state, representatives of non-governmental organizations, international financial institutions, and private companies to discuss plans for Ukraine’s post-war reconstruction. The Ukrainian delegation was led by Prime Minister Yuliia Svyrydenko.

Virtually all Ukrainian media outlets reported on the Conference’s outcomes and key results.

However, far fewer media outlets highlighted the remarks made during the Conference’s Infrastructure Platform discussion by Mark Magaletskyi, Deputy Head of the European Bank for Reconstruction and Development (EBRD) in Ukraine. He stated that the freight tariffs of JSC Ukrainian Railways (Ukrzaliznytsia) should be revised and that the company needs to rethink its business model.

According to Mr. Magaletskyi, the business model under which Ukrzaliznytsia has operated for more than 30 years has effectively reached the end of its lifecycle. It is based on cross-subsidising passenger transportation through freight revenues without stable government funding.

He stressed that Ukraine should now focus on ensuring the financial sustainability of Ukrzaliznytsia. This is important not only for maintaining the company’s operations during the war but also for securing continued international financial assistance.

Since the start of Russia’s full-scale invasion, the EBRD has provided more than €700 million to Ukrzaliznytsia, including €54 million in grant financing.

Mr. Magaletskyi also drew attention to Ukrzaliznytsia’s freight tariffs, which have not been indexed since 2022, despite declining freight volumes and the increasing financial burden on the company.

Further information on the Infrastructure Platform discussion, including the remarks made by Magda Kopczyńska, Director-General for Mobility and Transport at the European Commission, Oleksii Balesta, Deputy Minister for Communities and Territories Development of Ukraine, and Oleksandr Pertsovskyi, Chairman of the Management Board of JSC Ukrainian Railways (Ukrzaliznytsia), is available on the Interfax-Ukraine website:

https://interfax.com.ua/news/economic/1180257.html

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