The State Railway Administration (Ukrzaliznytsia) has replaced the company that provides compulsory insurance of passengers on four of Ukraine’s six railways, Ukrzaliznytsia’s First Deputy General Director Maksym Blank announced on his Facebook page.

"We have replaced all the previous insurance companies with the Interpolis company, in which the combined shares of Ukrzaliznytsia and the state total more than 50%. We have done this on four of the six railways, and the processing of the documents for the remaining railways is being finalized. The most important issue is that the rate of the insurance fee is now 0.4% compared with 1.5% of the cost of a ticket under the old system. It is more pleasant to passengers, and there are fewer opportunities for corruption," Blank wrote.

At the same time, he clarified that Ukrzaliznytsia has not abandoned the idea of open competitions: "It simply gave us the opportunity to maneuver quickly to break ties with the old insurance companies."

Blank previously announced that Ukrzaliznytsia has submitted a draft Cabinet of Ministers resolution that "reduces the scope for corruption" in the insurance industry. The document sets detailed requirements for insurers with the aim of excluding the possibility of little-known firms with questionable operating experience winning tenders.