In January, Energo Zbut Trans, a trading company of Ukrzaliznytsia (UZ), for the first time purchased natural gas for the needs of UZ production enterprises without the participation of private intermediaries. The cost of gas was more than 25% lower compared to the prices at which Ukrzaliznytsia's enterprises purchased natural gas at the end of last year through private suppliers.

The new price amounted to UAH 18,600 per thousand cubic meters (excluding VAT).

"In the context of a full-scale war, effective management of resources of state-owned enterprises, including such a strategic one as Ukrzaliznytsia, is a matter of state defense capability. That is why we are working to make the procurement process as transparent as possible and generate real savings.

To this end, we have already eliminated unnecessary intermediaries and simplified the procedures for Ukrzaliznytsia's procurement of electricity and oil products, and are finalizing these procedures for natural gas. This has freed up additional funds that Ukrzaliznytsia has used to develop its own infrastructure and rolling stock fleet," commented Oleksandr Kubrakov, Deputy Prime Minister for Reconstruction of Ukraine/Minister for Communities, Territories and Infrastructure Development.

The implementation of these approaches, which require transparency and the absence of any intermediaries, will save significant amounts of money for Ukrzaliznytsia in the short term. The next step of the company will be direct purchases of natural gas from producers directly for the needs of Ukrzaliznytsia itself.

As a reminder, in 2021, Ukrzaliznytsia was allowed to purchase electricity from Energoatom and other state-owned generation entities for a period of up to 3 years under a special simplified procedure.

In addition, in 2022, the Government authorized Ukrzaliznytsia to directly purchase petroleum products under foreign economic contracts.

These decisions have significantly reduced Ukrzaliznytsia's energy purchases and helped to resolve the fuel shortage caused by russian shelling.