UZ has reviewed its plans for 2020 / Photo from UNIAN
Ensuring the company's financial stability is a priority now.
Ukrainian Infrastructure Minister Vladyslav Kryklii says Ukraine's joint-stock railway company Ukrzaliznytsia (UZ) has put its cooperation with Deutsche Bahn and preparations for an initial public offering (IPO) on hold.
"Consultations with Deutsche Bahn will be put on hold," he said in an interview for the news outlet LIGA.net. "Do you remember the amount of the bid? It's over UAH 80 million [US$2.95 million]. UZ cannot afford it now."
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"What is more, they won't be able to come here – we have restrictions on foreigners' entry. Therefore, we will postpone everything," he added.
According to him, ensuring the company's financial stability, safeguarding the interests of its personnel, automating the processes, upgrading rolling stock, and fighting against corruption are UZ's priorities now.
He also forecasts that the company is unlikely to launch an IPO.
"It's definitely not a good time for a public offering now. We will get a bad assessment – it's not interesting. An IPO is a viable option. [Whether it happens] this year – I'm not sure. Much depends on pandemic-related developments," he added.
As UNIAN reported earlier, the Infrastructure Ministry, the European Bank for Reconstruction and Development (EBRD) and UZ on October 29, 2019, signed an agreement on the beginning of the IPO procedure for the Ukrainian company.
On January 22, the Infrastructure Ministry and Deutsche Bahn signed a memorandum of cooperation in Davos. The government said that UZ would be transferred to the German side for management for 10 years. Deutsche Bahn refuted the information, while UZ's Supervisory Board said that they did not have enough information for comment. Later, Deutsche Bahn clarified that issues related to operational management were under discussion.
On February 5, UZ, Deutsche Bahn AG and DB Engineering & Consulting GmbH signed a memorandum in Kyiv on strategic partnership to develop UZ.
On February 11, the Infrastructure Ministry announced a tender to buy consulting services for UZ.