Ukraine signs memorandum with Deutsche Bahn

The alliance is expected to boost the efficiency of the railway services in Ukraine.

Honcharuk announces the cooperation with Deutsche Bahn in Davos / Photo from facebook/PMHoncharuk

Honcharuk announces the cooperation with Deutsche Bahn in Davos / Photo from facebook/PMHoncharuk

Ukraine's Infrastructure Ministry and Germany's largest railway operator, Deutsche Bahn, have signed a memorandum of understanding, which foresees the provision of services to reform the state-owned company Ukrzaliznytsia's enterprise management mechanisms.

"This alliance is a logical continuation of Ukrzaliznytsia's restructuring plan, which was announced by President Volodymyr Zelensky in September 2019. I am sure that utilizing the most successful European railway company's experience will boost the efficiency and quality of rail transportation services in Ukraine," Ukrainian Prime Minister Oleksiy Honcharuk said on Telegram.

Read alsoTransportation of passengers by rail between Ukraine and EU 15% up in 2019

He also assured the state would not lose control over the company, as German experts will work only to reform the management mechanisms of Ukrzaliznytsia. "Therefore, I immediately squash all the rumors – we are not talking about any sale or lease of such a strategically important state asset as Ukrzaliznytsia. I hope that German operational efficiency and zero tolerance for corruption will become the basis for changing the situation at Ukrzaliznytsia," he said.

As UNIAN reported, President Vladimir Zelensky on September 2, 2019, ordered the Ukrainian government to draw up by the end of 2019 a plan for restructuring Ukrzaliznytsia to make it more efficient and transparent. He appointed Prime Minister Honcharuk and Infrastructure Minister Vladyslav Krykliy in charge of the project.

UNIAN memo. Ukrzaliznytsia is a joint-stock company, wholly owned by the state. The company is on the list of state-run enterprises that are not subject to privatization. It accounts for 82% of freight transportation and about 50% of passenger traffic by all modes of transport. In terms of freight traffic, the Ukrainian company ranks fourth on the Eurasian continent, after the railways of China, Russia and India.

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