The Ministry of Infrastructure of Ukraine, JSC Ukrainian Railways and EBRD signed A Memorandum of Understanding, which envisages cooperation between the parties to prepare an IPO for Ukrzaliznytsia. Minister of Infrastructure of Ukraine Vladyslav Kryklii announced today, October 29, 2019, in Mariupol.
Vladyslav Kryklii, Chairman of the Board of JSC Ukrainian Railways Evhen Kravtsov and Managing Director for Eastern Europe and the Caucasus at the EBRD Matteo Patrone inked a Memorandum in the framework of the RE:THINK. Invest in Ukraine forum in the presence of EBRD Vice President Alain Pilloux.
“The preparation for the initial public offering of Ukrzaliznytsia shares is an important message for the global community about Ukraine's readiness to reform the public monopoly. JSC Ukrainian Railways is the first Ukrainian state-run company planning to enter the foreign stock market, thereby enhancing the country's investment image," said Vladyslav Kryklii.
The Minister of Infrastructure also noted that means opening access of Ukrzaliznytsia to the capital of a wide range of investors, improvement of liquidity of the company’s assets, an opportunity to get an objective assessment of its value.
The implementation of the Memorandum envisages cooperation on the analysis and preparation of potential decisions on separation of business entities/enterprises in the process of preparation for IPO, analysis of the reform of the legal and regulatory support, evaluation and strengthening of corporate governance practices.
The joint efforts, expertise and support of all parties to the Memorandum will help to attract financing for the implementation of the ambitious investment program and to effectively implement the goals contained in the Cabinet of Ministers of Ukraine Action Program approved by the Cabinet of Ministers Resolution of September 29, 2019 No. 849 in the section pertaining to the development of the railway sector in Ukraine. Among other things, it will allow for the improvement of the quality of rail transportation services, ensure the modernization of the railway infrastructure and upgrading the rolling stock, which in turn will enhance the mobility of the economy of the country as a whole.