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Policy Papers

  • 24.04.2001

    Restructuring and Tariff Regulation in the Railways Sector Conclusions for Ukraine from International Experiences

    (Code:O20)

    Recently the State Administration of Railways Transportation of Ukraine (SARTU) initiated raising railways transportation tariffs by 20.8% to compensate for the year 2000 increase in prices railways inputs. After long debates the Ministry of Economy has approved 14.8% increase in freight transportation tariffs. According to the SARTU there is an obvious outmoding in the industry due to slower growth of railways tariffs in comparison with prices of inputs, especially energy and steel inputs.

    This resulted in a decrease of the number of cars and in lacking funds for railways rolling stock maintenance and development. However, the lack of funds for maintenance and development is also due to the redistribution of funds in favor of the passengers transportation.1 The SARTU reported a deficit of about UAH 1 bn in 2000 generated in passengers transportation, where UAH 500 mln was the deficit generated only by privileged passengers transportation, which was not compensated by the state. Nevertheless, at the same time a total profit of the railways of about UAH 500 mln was reported.

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    Research spheres:  Real sector
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