Ukrzaliznytsia gets new CEO
9 July 2015
The Infrastructure Ministry appointed on July 8 Oleksandr Zavhorodniy as the new CEO of the state railway monopoly, Ukrzaliznytsia (UZ, RAILUA). They key tasks for Zavhorodniy, who previously served as deputy CEO, are restoring railroads and connections ruined by the war in Donbas, updating rolling stock and ensuring the stability of spare parts procurement, said Infrastructure Minister Andriy Pyvovarskiy at the appointment ceremony. Zavhorodniy was also appointed as head of the commission to reorganize Ukrzaliznytsia.
Ukrzaliznytsia was badly hit by the warfare in Donbas, since a large chunk of its commercial transport services had been in the region, as well as by Russia’s annexation of Crimea. In 2H14, cargo transportation volume fell 22% h/h to 184 mmt. The previous CEO of Ukrzaliznytsia was fired on Dec. 1, 2014.
Roman Topolyuk:Being negatively impacted by the war and being periodically involved in corruption scandals, Ukrzaliznytsia needs a stable technocratic management so that the necessary reforms can be implemented. The new CEO’s appointment adds something positive to the company’s debt profile as negotiations with creditors regarding the restructuring of its UAH 22 bln domestic debt, on which UZ defaulted in May, are currently being conducted by the government. The restructuring of this debt might be finished by the summer’s end, Debtwire reported at the end of June.
