Ukrzaliznychpostach state enterprise, which engages in purchase and delivery of products for Ukrainian railways, reviewed a number of contracts with contractors from late April to mid-August with the aim of reducing their costs. This resulted in savings of about UAH 354.6 million, the press service of the State Railway Administration (Ukrzaliznytsia) announced.

More than UAH 234 million was saved thanks to the review of one contract alone - the contract with TD Elektrovozmash for supply of 91 mainline electric locomotives.

In addition, Ukrzaliznychpostach reviewed several agreements with Dniprozaliznychpostachannia, Transinvest Holding LLC, Interpipe Ukraine LLC, and Levada Oil LLC for supply of railway switches, point rails, frogs, wheels for rolling stock, lubricants, and oils. The total savings on these contracts is more than UAH 120 million.

The review of the contract with the A-Sept company for supply of washing powder is expected to save UAH 600,000.

In addition, agreements on discounts were concluded with a number of companies, allowing reduction of payments by an additional UAH 43.9 million. Thus, the total amount of savings through reduction of the prices of goods and review of contracts will be UAH 398.5 million.

Meanwhile, 15 contracts worth a total of UAH 1.6 billion have been terminated because counterparties failed to fulfil their obligations to supply products and because of failure to reach agreement on reduction of prices.

Ukrzaliznytsia’s General Director Borys Ostapiuk recently ordered performance of work aimed at reducing the prices of goods, works, and services procured by Ukrzaliznytsia in 2014 by up to 15%, compared with the previous year’s prices.