The State Railway Administration (Ukrzaliznytsia) has promised to exclude shady intermediary companies that charge cargo owners commissions from the organization of freight transportation in the near future.

"We are completely changing the mechanism for providing services to freight forwarders to ensure that there are no shady intermediaries. We have our own logistics center, and all its operations essentially boil down to ensuring that a single service link is maintained: all receipts from customers should be collected there. As soon as we uncover any signs of corruption, we will immediately send the relevant materials to the law enforcement authorities," Ukrzaliznytsia’s First Deputy General Director Maksym Blank said at a press conference on Thursday, the CFTS reports.

"Captive insurance companies are still receiving payments today, but the situation will change in the near future,” he added.

Blank also noted that Ukrzaliznytsia intends to review its operations with insurance companies, which, according to him, collected UAH 150 million each per year but paid passengers UAH 6 million per year.

"They have partly compensated for the railway’s safety expenditures, but around UAH 50-60 million always remained in free distribution, and we suspect that corruption was most likely involved. We want to remove the difference between UAH 150 million and UAH 6 million, and we have submitted the relevant draft resolution. We have gathered companies and compiled a list of requirements for insurers. This is to ensure that they are not captive companies but well-recommended companies that are capable of paying insurance,” said Blank.