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16.02.2017

President of Ukraine has supported legal moratorium for repayment of SE “Donetsk Railway” indebtedness by JSC “Ukrzaliznytsia”

On February 15, 2017 the Law of Ukraine “On Amendments to Certain Ukrainian Legal Acts concerning Railway Enterprises with Property Located on the Anti-Terrorist Operation Territory” has been signed and returned from the President of Ukraine. This law temporarily sets up the moratorium on foreclosure upon the assets of JSC “Ukrzaliznytsia” (the Company) due to obligations of railway enterprises, whose property is located on the Anti-Terrorist Operation (ATO) territory. In particular, this law protects the Company against foreclosures under obligations of SE “Donetsk Railway” (the Donetsk Railway). The law takes into legal force on February 17, 2017.

 “Preparing of the mentioned law is an outcome of the active work of JSC “Ukrzaliznytsia” Managing Board, which initiates resolving of issues concerned financial obligations of the Donetsk Railway since April, 2016. Due to the effect of this law, funds in the amount of more than 5 billion UAH, which could be directed on fixed assets renovation and infrastructure development, will be protected from the foreclosure” – has commented Oleksandr Buzhor – Member of the Board JSC “Ukrzaliznytsia”.

This law also provides, that at the time of moratorium shall be ceased enforcement proceedings and measures regarding foreclosure upon the Company's assets due to obligations of railway enterprises, whose property is located on the ATO territory.

 

The law restores balance between assets and obligations of reorganized railway enterprises accepted by the Company and protects economic interests of the Company against legal collisions and financial obligations of SE “Donetsk Railway”.

 

The law applies to obligations of enterprises, whose rights and obligations were not transferred to the Company. The Company did not become an assignee of the rights and obligations of these railway enterprises in accordance with procedures provided for by the Resolution No. 200 dated 25.06.2014 and Resolution No. 604 dated 12.11.2014 taken by the Cabinet of Ministers of Ukraine.