The Ukrainian Railways joint-stock company (Ukrzaliznytsia) has decided to temporarily suspend coupon payments on Eurobonds issued before the Russian invasion of Ukraine (in 2019 and 2021), effective 9 January 2026.
As reported by the CFTS portal, Ukrzaliznytsia said that it made extraordinary efforts throughout 2025 to service its Eurobonds properly in order to maintain constructive relations with bondholders in anticipation of a restructuring of its financial obligations.
However, under the current circumstances, the company is compelled to focus its resources on financing urgent expenditures, including ensuring the resilience of the railway system amid constant attacks, protecting Ukrzaliznytsia’s assets from the aggressor’s attacks, securing reserves of materials for rapid recovery, and covering the costs required to keep rail operations running without interruption.
"This decision is driven by the need to preserve liquidity and ensure uninterrupted rail transportation, and make timely wage payments to railway employees—a strategically important factor in Ukraine’s defense capability under martial law. The challenges posed by the war have intensified significantly: railway facilities were attacked more frequently in 2025 than in 2023 and 2024 combined, resulting in far more severe consequences, while freight and passenger volumes continue to decline sharply because of military operations. Against the backdrop of widespread destruction and deteriorating operational processes caused by the war, Ukrzaliznytsia’s liquidity position has deteriorated further," the company said.
The total outstanding debt on the Eurobonds maturing in 2019 and 2021 exceeds USD 1 billion, of which more than USD 700 million is due for repayment by July 2026.
The railway company added that it is currently working on a strategic solution and that it is counting on constructive negotiations with Eurobond holders to reduce its financial burden.
