Ukraine adopts PSO model for long-distance trains, EUR 310m for 2026

The state reimburses Ukrzaliznycja for the gap between actual costs and socially acceptable fares; the average cost of a trip is more than three times the ticket price. Funds are paid quarterly in advance, the state audit service DASU checks spending, and journeys made in January and February 2026 are also funded.

The Ukrainian government is introducing, on a trial basis for 2026, a European-style ordering model for domestic long-distance rail (PSO): the state reimburses state railway Ukrzaliznycja for the gap between its costs and socially acceptable fares, with an average trip costing more than three times the ticket price. The order volume for 2026 is UAH 16 billion (about EUR 310 million) and covers the main long-distance routes; payments are made quarterly in advance, retroactively also for January and February 2026, and the state audit service DASU checks spending from the start. The aim is to relieve Ukrzaliznycja and gradually end cross-subsidies between rail segments. (LOK Report, 26 Feb 2026)