“UZ's Supervisory Board is on track with tangible and progressive steps of reform aimed at continued transformation and modernization of JSC Ukrzaliznytsia (UZ) during 2021 and beyond

Since it's formation in June 2018, UZ's Supervisory Board has been and continues to be committed to serve Ukraine's and UZ's best interest. Ukraine needs an economically and institutionally strong and financially healthy sector for cargo and passenger transportation, which also complies with the requirements of the EU Association Agreement. As the sector's backbone, UZ needs to transform and modernize its services, infrastructure and business model such that it remains a strong market player and a valuable asset for its shareholder.

To achieve this target, the Company's Management Board continues to develop plans which are being implemented once they are properly discussed, aligned and approved by the Supervisory Board. These discussions and approvals are based on the applicable rules & regulations of UZ, namely the Company's Charter, and its Strategy as approved by the shareholder, the Government of Ukraine. In its work, the Supervisory Board also seeks regular and appropriate alignment with UZ's shareholder and refrains from discussing or publishing decisions.

The Supervisory Board always encourages the Management to liaise with key stakeholders incl. clients and labour force and recognizes the feedback received as valuable input for taking decisions. The Supervisory Board is keen at the same time to ensure that the necessary processes of healthy discussion and decision making as well as the underlying confidential, commercially sensitive information do not leak to the public domain as this could result in an out of context, uninformed and superficial public commentary. The risks involved with such a situation are obvious in terms of potential populistic hijacking of the crucial UZ agenda and the confusion this would unavoidably create among the stakeholders.

UZ's Supervisory Board continues pushing for developing and implementing transformational reforms and coherent investment plans consistent with the current and future requirements of Ukraine's market for cargo and passenger transportation as well as with the Company's financial position. The Supervisory Board also remains strongly committed to engage in serious and constructive discussions for sharing perspectives about the Company's future development.