The Ukrzaliznytsia public railway company expects to increase its operating revenues by USD 480 million in 2016 by raising its freight tariffs by 15% and increasing its freight transport volume. The company’s management announced this during a web presentation on the restructuring of USD 0.5 billion in Eurobonds, the Interfax Ukraine news agency reports.
The management of Ukrzaliznytsia also expects optimization of the company’s operations to increase its profit by UAH 5.2 billion (USD 0.2 billion).
In addition, according to the management, Ukrzaliznytsia is continuing freight transportation in the Donetsk and Luhansk regions (including the territories controlled by militants), mainly transportation of coal from these regions. The payments that the company received from its operations in these regions amounted to UAH 350 million in December 2015 and UAH 220 million in January 2106.
Ukrzaliznytsia also said that more than half of the holders of its Eurobonds worth a total of USD 500 million have preliminarily agreed to restructure the Eurobonds.
Ukrzaliznytsia will convene a meeting of the holders of its Eurobonds on 17 February. If there is no quorum, another meeting will be scheduled for 3 March.