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Ukrainian railways floating IPO, could sell off part of monopoly - Interview

Фото: УНИАН

Фото: УНИАН

If the company makes an initial public offering on the stock exchange, foreign investors will be able to buy a non-controlling stake in the monopoly. Ukrzaliznytsia (Ukrainian Railways) would invest the money to develop the company.

Quote"My vision of Ukrzaliznytsia is its IPO orientation, the sale of part of its shares on the open market. At the same time, the state should retain control over the key asset. [...] This would create an element of additional control on the part of private investors," Ukrzaliznytsia chief Yevhen Kravtsov said in an interview published on August 12 by the Kyiv-based UNIAN news agency.

Kravtsov there are many similar examples in the world. For example, the Polish railway company PKP Cargo went this way. And the Austrian Rail Cargo bought the state-owned Hungarian freight company at one time. Both sides benefited from this. Rail Cargo, together with other assets outside Austria, is the second in the central European freight transport market.

Ukrzaliznytsia can also benefit from incorporating new technologies, management methods, as well as attracting international support for conglomerates.

Now the structure of Ukrzaliznytsia includes the Donetsk, Lviv, Odessa, South, Southwest and Dnieper railways, as well as other enterprises and organizations that provide transportation of goods and passengers.

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