Ukraine plans to open the railway transportation market on European-gauge tracks in 2031
Ukraine plans to open the market for railway transport services on the 1435 mm European-gauge network in 2031. This is intended to create conditions for access to infrastructure for various railway carriers and a gradual transition from the current model to a competitive market under EU rules.
This timeframe is set out in the Roadmap for the Reform of Railway Transport of Ukraine, which the Cabinet of Ministers approved by Order No. 975-r dated September 23, 2026.
The document provides for a phased opening of the market. The network of the European standard gauge of 1435 mm is to be opened first for carrier competition. For the traditional Ukrainian gauge of 1520 mm, no specific calendar date has been set yet.
Opening of that market is planned after the completion of transition periods that Ukraine will agree upon as part of the EU accession negotiations under the "Transport Policy" chapter, but in any case not earlier than the termination or lifting of martial law. This is explicitly stated in the final clause of the government action plan.
The opening of the market will mean a transition to a model where access to railway infrastructure should be provided to carriers on transparent and non-discriminatory terms. The government roadmap provides for the creation of independent regulation, a new tariff model for infrastructure use, and rules for the allocation of its capacity.
Before launching competition, the government plans to carry out a large-scale restructuring of the sector itself. In particular, by the end of 2027, "Ukrzaliznytsia" must organizationally and in accounting separate infrastructure management from transportation activities. By the end of 2029, the company must transition to the target corporate model designed for operation in an open market.
Also, by December 2028, the government plans to prepare a law "On the Railway Transport Services Market," and by the end of 2029 - to create a National Commission that will regulate transport. The necessary secondary legislation should be adopted by the end of 2030.
Separately, "Ukrzaliznytsia" must, by the end of 2029, prepare data and calculations for the new tariff model of infrastructure access, and also develop procedures for the allocation of railway capacity.
The reform applies not only to freight transport. The roadmap also provides for a change in the passenger service model. Instead of the current cross-subsidization of passenger transport by revenues from freight operations, the state should move to contracts for providing socially important transport services with transparent compensation for their cost.
After the opening of the relevant railway network, long-term contracts for socially important passenger services for up to 15 years may be concluded.
The government explains the reform by the need to fulfil Ukraine's obligations on the road to EU membership. The current system remains vertically integrated: infrastructure, transport, passenger service financing, and state regulation are largely interconnected. The new model should ensure independent regulation, transparent tariff setting, and equal access of new entrants to railway infrastructure.
Thus, 2031 is defined in the roadmap as the first concrete timeframe for opening part of the Ukrainian railway network to a competitive market - the decision was made to start with the 1435 mm European gauge. For the 1520 mm main network, the reform is postponed to a later stage and will depend on both negotiations with the EU and the end of martial law.
Source: Cabinet of Ministers of Ukraine
