Ukrzaliznytsia risks default as passenger losses strain finances

Ukrzaliznytsia faces default risk due to unresolved passenger transport losses, exacerbated by bondholder refusal to restructure debt. The company is attempting to restructure $1.1 billion in debt, but some investors demand higher freight tariffs. Analysts warn this could reduce freight volumes and competitiveness. Systemic underfunding of passenger services, covered by freight revenue, has created a financial crisis. Direct state funding for passenger transport is suggested as a solution.