Ukrainian authorities expect $350 mln net losses for Ukrzaliznytsia in 2024

MOSCOW. Nov 20 (Interfax) - The Government of Ukraine approved the financial plan of national railway operator Ukrzaliznytsia JSC for 2024 with a net loss of 12.6 billion hryvnia (approximately $348.6 million at the current exchange rate).

"The Cabinet of Ministers approved the consolidated financial plan of Ukrzaliznytsia JSC for 2024. The main figures are as follows: net income - UAH 98.6 billion, total income - UAH 103.2 billion, and a loss of UAH 12.6 billion," Ukrainian media reported with reference to a statement from Verkhovna Rada deputy Alexei Goncharenko on his Telegram channel

After approval of this financial plan, the company will submit proposals to reach break-even, including increasing tariffs for cargo transportation to account for the inflationary component.

It is expected that Ukrzaliznytsia's expenses will increase next year, including due to costs associated with purchasing electricity, diesel fuel and natural gas due to rising prices. In addition, the wage fund is expected to increase. Expenses are expected to increase due to exchange rate differences.

It was previously reported that the railway company's financial plan for 2023 included a loss of UAH 20.2 billion. However, as a result of implementing proposals to reach break-even and optimize costs, it managed to make a small profit, the amount of which was not disclosed.

The official exchange rate as of November 20 is 36.14 UAH/$1.