Most of the fixed assets of the State Railway Administration (Ukrzaliznytsia), primarily railway infrastructure and rolling stock, were not taken into account during the valuation of Ukrzaliznytsia because they were not legally owned by Ukrzaliznytsia’s enterprises. Artur Ohadzhanyan, a partner at Deloitte Ukraine, stated this in an interview with the CFTS portal.

"They (the fixed assets) were used on the basis of economic management rights granted by the state. Accordingly, rights to economic management of these fixed assets are specifically stipulated in the authorized fund of the newly created joint-stock company. Given the fact that the state is and will remain the sole shareholder of the newly created joint-stock company, this was not reflected in the value of the assets. While giving the joint-stock company the opportunity to exploit these assets without obstruction, the state retained the ownership right to them," said Ohadzhanyan.

In general, according to him, the objects of the appraisal were all the non-current assets of the companies that were part of Ukrzaliznytsia: fixed assets, intangible assets, long-term financial investments, and unfinished capital investments.

In addition, Deloitte was also given the task of appraising the right to use land plots. "The number of objects appraised exceeded 900,000. In addition to Ukrzaliznytsia’s assets, the equity of seven enterprises that engage in meeting the technical needs of Ukrzaliznytsia (rolling stock repair enterprises, reinforced concrete plants, etc.) were also appraised," said Ohadzhanyan.

As reported, according to the valuation performed by Deloitte, the assets of Ukrzaliznytsia are worth UAH 245 billion. This amount is taken into account during determination of the authorized capital of the Ukrzaliznytsia Public Joint-Stock Company. Ukrzaliznytsia currently operates as a state railway administration with an intricate system of economic relations with its numerous enterprises. Creation of the public joint-stock company is intended to make the management of the state railway sector more transparent and clear to international investors.