"Ukrzaliznytsia has a low level of management

The increase in tariffs for rail passenger transportation is the result of irrational business practices at Ukrzaliznytsia.

Viktor Medvid, coordinator of the Mutual Aid movement, said this in a commentary to a GolosUA correspondent.

"It should be borne in mind that Ukrzaliznytsia has a low level of management. Therefore, the increase in fares is a consequence of irrational business practices," the expert said.

Mr. Medved noted that with such large internal hidden reserves, the government could have done without raising tariffs.

"The company's internal hidden reserves amount to tens of billions of hryvnias. And if the company operated normally for 3-4 years, it could increase its profitability by 30 billion," the expert emphasized.

In addition, speaking about the factors that prevent rational management, V. Medved pointed out that Ukrzaliznytsia is a state-owned enterprise. In addition, a very high corruption burden, ineffective recruitment, etc. should be taken into account.

"The company has zero motivation to improve efficiency. Therefore, instead of improving efficiency, it is easier to raise tariffs," the expert concluded.

Earlier, Yevhen Kravtsov, Chairman of the Board of Ukrzaliznytsia, said that in 2018 they plan to raise passenger transportation tariffs in two stages under 10%. This decision was justified by a significant increase in prices for fuel, spare parts, metal, and other goods purchased by the company.