“Ukrzaliznytsya” is suffering huge losses

At itogon January-March 2020 “Ukrzaliznytsya” has received a loss of $ 7 billion.

«Укрзализныця» терпит колоссальные убытки

It is reported by Interfax with reference to published materials on the website of the Cabinet on 20 may, reports analytical portal “Hvilya”.

The document States that since March 11, 2020 Ukrzaliznytsia has suspended the business activity, negatively affecting its financial and economic indicators.

“The results of the first quarter of the current year, the company received a loss of UAH 7 billion… At the same time, according to forecasts of companies, in connection with necessity of repayment of loans and interest thereon (11 billion and 3 billion respectively), the shortfall by the end of the year could reach 16 billion UAH”, — stated in the explanatory note.

The document also noted that the decline in production in Ukraine, stop individual companies-shippers and adverse conditions in international markets led to a decrease of total turnover in the first quarter of 2020 4.8% compared to the same period last year.

Also, the government announced several compensation measures to minimize negative consequences. Among which: the idle mode for the staff, the suspension of the planned salary increases, limit purchases financially-technical resources and services (except for critical positions), optimization of payments.

Accordingly, the Ministry of infrastructure proposes to install for the “Ukrzaliznytsia” basic standard deduction of part of profit allocated for payment of dividends following the results of business activity in 2019, at the rate of 30% (currently 90%).