Railway infrastructure financial security: the Ukrainian case

Abstrakt

Transport infrastructure reforming is of great importance for Ukraine given the economic and geographical position of the country and its strategic position on the world stage as well as for its long-term internal development. The article considers extensive railway network as a competitive advantage of Ukraine's economy. Extensive railway infrastructure availability is a potential area for economic growth in the future for Ukraine. Railway transportations market of Ukraine is considered deeply highlighting its main problems. Only cooperation with transport networks of other countries enables Ukraine's transport potential to be fully fulfilled. Current situation regarding Ukraine-EU Association Agreement requirements fulfillment is considered. Implementation progress for various areas is presented, but most attention is paid to transport and infrastructure. The essence and role of financial resources for Ukrainian railway infrastructure development on the way to European integration are substantiated. The priority actions necessary for railway infrastructure financing mechanism reorganization are proposed. Railway infrastructure in need of modernization as well as insufficient funding for railway industry affects pricing, as railway infrastructure is not only a key capacity for railway undertakings, but also a capacity that is part of a strategically important industry, leading to unsatisfactory national economy and even decreases country's defense capabilities to some extent. The need for effective railway infrastructure financing mechanism, in particular through the state support system is defined.

Index Terms — railways, railway infrastructure, railway infrastructure financing, public finances involvement.