Ukrzaliznytsia Reveals Plans For Capital Investments In 2015

The Cabinet of Ministers has approved the consolidated financial plan of the State Railway Administration (Ukrzaliznytsia) for 2015. The plan was approved via the order No. 850 of 19 August, the Interfax Ukraine news agency reports. The text of the financial plan is not yet available.

Deputy Prime Minister of Ukraine Valerii Voschevskyi said in July 2015 that the government approved Ukrzaliznytsia’s draft financial plan for 2015 on 22 July with projected capital expenditures of about UAH 2 billion. However, it later emerged that the document had been returned for redrafting.

Minister of Infrastructure Andrii Pyvovarskyi told reporters at the time that Ukrzaliznytsia’s financial plan provided for a net loss of about UAH 47 million in 2015.

According to Ukrzaliznytsia, its consolidated financial plan for 2015 provides for revenue in excess of UAH 59.5 billion, which is almost UAH 8.9 billion more than its revenue in 2014. It also provides for transfer of UAH 12.1 billion into the state budget and special funds.

Ukrzaliznytsia’s capital investments are projected to total UAH 2.1 billion in 2015. The financial plan provides for spending 89.6% of this amount on purchase of goods, materials, and services of Ukrainian origin, which will save or create about 357,000 new jobs.

Most of the capital investments will be made as follows: UAH 233.1 million on acquisition of fixed assets, including UAH 108.6 million on acquisition of rolling stock; UAH 124.5 million on purchase of other fixed assets (machinery and equipment); more than UAH 1 billion on modernization and modification of fixed assets, including UAH 656 million on modernization of freight and passenger cars, traction equipment, railway, and other rolling stock; UAH 221 million on modernization of tracks; UAH 192 million on modernization of other fixed assets; nearly UAH 584 million on capital construction, including UAH 200 million on construction of the Beskyd tunnel; UAH 168.6 million on intangible assets and acquisition (manufacture) of other non-current tangible assets.