The State Railway Administration (Ukrzaliznytsia) reduced passenger transportation by more than 440 million or 8.9% in 2014 (compared with 2013), and its losses from provision of this type of service exceeded UAH 7.9 billion. The Interfax Ukraine news agency reported this, citing the press service of Ukrzaliznytsia.
"As in previous years, the trend of late and incomplete compensation of railways for their expenditures on transportation of citizens entitled to transport benefits continues. For example, transport services worth UAH 582.3 million were provided to the categories of citizens that are entitled to transport benefits last year, but UAH 165.6 million or 28% was received as compensation. The debt for transportation of citizens entitled to transport benefits in 2014 is UAH 416.7 million," the press service said.
Currently, Ukrainian railways transport 25 categories of citizens entitled to transport benefits.
According to Article 9 of the law "On Rail Transport," state or local budgets are to compensate railways for losses from transportation of citizens entitled to transport benefits, depending on the agency that decides to introduce the relevant benefits.