Kravtsov appointed CEO of Ukrainian Railway

Ukraine’s Cabinet of Ministers appointed at its Jan.
10 meeting Yevhen Kravtsov as the CEO of Ukrainian Railway (RAILUA), the
company reported the same day. Kravtsov was recommended as CEO by the company’s
supervisory board, which considered no other candidates. Kravtsov was appointed
acting  CEO of the company in August 2017, after the company’s previous CEO resigned due to a
conflict with the infrastructure minister.

Alexander Paraschiy: We view
this news as slightly positive for the company, as Kravtsov and his team have
proven to be efficient reformers of Ukrainian Railway. Among his key
achievements is starting deregulation of railway rates (which the company
hadn’t been able to secure for two decades), intensifying renovation of the
company’s rolling stock, as well as initiatives on efficiency improvements in
the company.

With this enhancement in authority, we expect
Kravtsov will intensify his efforts to restructure the company and make it more
efficient. Among the key short-term challenges for Ukrainian Railway is the
scheduled repayment of USD 300 mln in Eurobonds this year, the refinancing for
which has yet to be found.