The disastrous adventure of a Polish rocker on the Ukrainian railway

Of the 2016 gondola cars announced by the Polish rock musician and entrepreneur, and now the head of Ukrzaliznytsia, Wojciech Balczun, there is nothing in fact.

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Chairman of the Federation of Metallurgists of Ukraine Sergei Belenky spoke about this at a press conference in Kyiv, commenting on the intention to increase tariffs on the Ukrainian railway by 25 percent.

“Ukrazaliznytsia” uses the funds received from rising tariffs, as a rule, for consumption instead of capital investments, unfortunately. According to the results of 10 months of 2016, for example, labor costs increased by 8 percent, other operating expenses - by 31 percent. In total, this is more than 3,5 billion hryvnia of additional costs. At the same time, capital investments for 10 months amounted to only 3,8 billion hryvnia, while the plan for the year was 11,2 billion hryvnia. Of the 2016 gondola cars announced by Wojciech Balczun for acquisition in 1600, in fact there is nothing except 20 cars that he presented at DRVZ,” said the chairman of the Federation of Metallurgists of Ukraine.

He also offered to familiarize himself with the draft financial plan for the railway for 2017.

“So far we are only receiving versions from unofficial sources, but even this is enough to see: next year administrative costs are planned at 1,75 billion hryvnia, which is 2016 percent more than the 95,4 financial plan. Typically, the increase in administrative costs is planned mainly due to an increase in the wage fund of members of the board of Ukrzaliznytsia in accordance with signed contracts. Therefore, before talking about increasing tariffs, we would like to see, at least in dynamics over the last two to three years, a detailed report on where additional funds were spent from previous tariff increases and where they will be spent from subsequent increases,” Belenky said.