“UZ has planned to increase tariffs for cargo transportation by almost 40% next year.”, — write: www.unian.ua
UZ has planned to increase tariffs for cargo transportation by almost 40% next year.
photo by UNIANUkrzaliznytsia faced significant difficulties, but the company’s international partners hope that the situation will improve and UZ will be able to save on its costs. In addition, UZ should change the situation in passenger transportation – instead of cross-subsidizing at the expense of cargo transportation, the company should receive targeted funding from the budget. Odile Renaud-Basso – the president of the European Bank for Reconstruction and Development, which lends to UZ, told about it.
“As a creditor of a state-owned enterprise, we believe that tariffs (for freight transportation – Ed.) and passenger contributions are important elements for balancing the financial indicators of companies. Instead of cross-financing (freight direction of passenger – EP), sometimes it is useful to switch to price restoration when customers pay for services. But they can receive targeted support from the budget when it comes to the most vulnerable segments of the population. This can be a more effective solution,” Odil emphasized Renault-Basso.
She also noted that currently discussions with Ukrzaliznytsia are ongoing, because the bank needs to learn about the company’s strategy and make sure that it is able to return the funds.
As you know, UZ has planned to increase tariffs for freight transportation by almost 40% next year, in order to compensate in this way for losses from passenger transportation. In turn, the European Business Association and the American Chamber of Commerce appealed to the government to include in the budget compensation for UZ for unprofitable passenger transportation. Business associations emphasized that the current system of financing through cross-subsidization contradicts European practice and harms the Ukrainian economy.
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