Ukranian Railways plans to increase of cross-subsidization
Published: Tue, 2015-03-10 17:04Ukrainian national railway operator Ukranian Railways plans a significant increase of the volume of cross-subsidization of passenger rail transportations this year, which is expected to take place at the expense of freight rail transportations, according to the company.
According to Ukranian Railways , the annual amount of subsidies will be about 7.6 billion hryvnia (US$300 million). This, however, will be by 40% lower the results of 2014.
One of the reasons of such cross-subsidization is chronic loss-making of passenger rail transportations in Ukraine. For example, losses of Ukranian Railways in the segment of passenger rail transportations in 2014 amounted to more than US$490 million. According to the company, this trend will continue this year.