Omelyan says Ukrzaliznytsia could fail to fulfill capital investment plan due to eurobond payments

JSC Ukrzaliznytsia could fail to fulfill the plan for capital investments because of the need to pay more than $150 million on eurobonds in the second half of this year, Infrastructure Minister Volodymyr Omelyan has said in an interview with Interfax-Ukraine.

“In the second half (of the year) they must pay $150 million on eurobonds and $17.3 million of interest. Of course, this is much for Ukrzaliznytsia,” the minister said.

According to him, in the near future the company will be able to evaluate what to do with the expected repayment, from where to raise these funds and how to carry out restructuring.

“But, frankly speaking, this is much for the company. And, of course, this will result in the non-fulfillment of the capital investment plan,” Omelyan said.

He also noted that the result of Ukrzaliznytsia’s investments last year also sets one thinking.

“On the one hand, they really invested a record high Hr 16 billion in capital investments, on the other hand, the building and repair of locomotives were almost 50 percent lower than the promised. I am not ready to comment what this year will show, because we have not finished the first half of the year,” the minister said.