JSC “UKRAINIAN RAILWAYS” WILL HAVE A NEW CEO

On 7 October 2024, the Board of Directors of Ukrainian Railways announced that Yevhen Liashchenko, Chairman of the Board, had submitted his resignation.

The company’s Supervisory Board is expected to consider the letter in the coming days and take all necessary decisions in accordance with the existing procedures.

Yevhen Liashchenko was appointed Chairman of the Management Board of JSC ‘Ukrainian Railways’ with effect from 23 March 2023 pursuant to the Resolution of the Cabinet of Ministers of Ukraine No. 231-r dated 21 March 2023 for a period of two years.

Commenting on this appointment, the Vice Prime Minister of Ukraine, Minister of Communities, Territories and Infrastructure Development, Oleksandr Kubrakov, noted that the newly appointed CEO of Ukrzaliznytsia has three key tasks. The first is to continue the reform of Ukrzaliznytsia, namely the allocation of separate business verticals in accordance with the scope of activities (passenger, freight, production and infrastructure) and compliance with European legislation, especially in terms of safety and inclusiveness. The second is the implementation of the investment programme (development of export routes and creation of the necessary infrastructure, electrification of railway sections, etc.) The third is for the company to break even.

In 2023, Ukrzaliznytsia earned UAH 4.9 billion in profit, compared to almost UAH 10 billion in losses in 2022. In the first half of 2024, the company’s profit was UAH 3 billion. However, in July and August 2024, the company faced losses of UAH 600-700 million. In an interview with Forbes, Yevhen Liashchenko cited rising electricity and fuel costs and an increase in unprofitable cargo transportation as the reasons for the losses.

From the Association. What prompted the head of JSC Ukrzaliznytsia to terminate his powers early? Possible suspension of the issue of increasing tariffs for rail freight transportation this year by unifying them. In July this year, the Kyiv District Administrative Court may invalidate the order of the Ministry of Infrastructure of Ukraine dated 29 October 2021 No. 586 on increasing tariffs for the transportation of a group of goods of the first tariff class from 1 January 2022. Perhaps the first and second. Or maybe something else.

By the way, since the establishment of Ukrainian Railways (state registration took place on 21 October 2015), Yevhen Liashchenko has been the eleventh Chairman of the Board of the company. At the same time, he is only the fourth head of the company who has worked in this position for more than one year.

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