“Ukrainian Railways is working on effective process of the property management and control,” Arthur Reznik
JSC “Ukrainian railways” is working on an easy, effective and fast process of the property management and control. It was announced by Arthur Reznik, the Chief of Property Policy of the company.
“The thing is that now we are not flexible regarding this issue and it is the result of bureaucratic excessive regulation. We are not able to manage our property effectively as some assets selling preparation takes roughly 6 months. We have developed the draft amendment to property management decree which makes the process of property control much easier, widen the competence of the Management and Supervisory Boards and reduce the pressure on the Cabinet of Ministers of Ukraine”, stated Arthur Reznik during the interview for the “12 faces of Ukrainian Railways Strategy” project. Speaking about assets privatization in terms of the company reorganization, Arthur Reznik emphasized that there is a possibility to consider it only by selling of the minor part of shares of the freight operator, which will help to attract investments.
“The infrastructure operator cannot be privatized as we are speaking about strategic objects of the country, its defense capacity, dangerous freight transportation, etc. The passenger operator is not profitable now so it is less eligible for being privatized”, added Arthur Reznik. According to him, another possible mechanism for property management is concession. Apart from this, there are other ways how to involve capital to UZ assets. For instance, leasing. If concession is a strategic perspective in terms of railway station development, leasing is a tactic thing. Concession projects are huge though and demand a lot of efforts.