Opinion
Ukrzaliznytsia reform: why tariffs and ticket shortages are part of the same reality
The main problem is that the domestic passenger segment is operating at a loss, and these losses are hidden at the expense of other revenues
Iryna Kosse
Senior Research Fellow at the Institute for Economic Research and Policy Consulting
The summer of 2025 has put an end to the discussions around Ukrzaliznytsia: demand for transportation in some directions exceeds supply by seven to eight times, tens of thousands of passengers are left without tickets, businesses are sounding the alarm about potential increases in freight tariffs, and UZ is still operating without an approved financial plan for the year.
To understand what is happening, we need to go beyond emotions and look at the situation systematically: through the prism of reform and economic policy.
Three problems, one root:
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