KCW handed over 85 passenger railcars to Ukrzaliznytsia as part of the contract

Kryukov Carriage Works (KCW) has handed over 85 new passenger railcars to the customer since the conclusion of the contract with Ukrzaliznytsia (UZ) (June 2021). This is stated in the KCW’s press release on the Facebook page.

In 2022, UZ received 65 railcars, another 20 units of rolling stock were shipped in 2021.

At the same time, as the company notes, the last calculations by UZ for produced and shipped rolling stock were carried out in 2021 and only for 15 railcars – in the amount of UAH 310.7 million. The total amount of receivables of Ukrzaliznytsia for the delivered 70 railcars is UAH 1.48 billion.

“As of December 28, 2022, no operations by the State Treasury Service of Ukraine on the settlements of UZ with KCW for delivered passenger railcars, which are in operation since November 2021, were carried out,” the message states.

Dmytro Lunin, head of the Poltava Regional Military Administration, stated earlier in «Kremenchutska newspaper» that the company had received payment for the delivered products. KCW denies this information.

“All accounts are in the State Treasury Service of Ukraine, the debt amounts to almost one and a half billion hryvnias! And the Kryukov Carriage Works will be idle for the first two decades of January 2023, because there are no funds to purchase components,” the company adds.

Receipt of funds for KCW in the current month is critically necessary to complete the execution of the state order in full and ensure the delivery of the remaining 15 railcars.

As of March 2, 2022, KCW produced 30 passenger railcars for UZ. In total, according to the supply contract, the company must build 100 wagons for the railway operator. Agreement between companies was concluded in June 2021. From that time until the end of last year, KCW managed to produce and transfer 20 railcars.

As GMK Center reported earlier, at the end of May, the prosecutor’s office arrested Russian 25% of KCW shares. Their owner, Stanislav Gamzalov, is suspected of facilitating the purchase of parts for the construction of cars from enterprises from the Russian Federation at inflated prices whilw there are lower-cost analogues of Ukrainian production. Actions have already been transferred to ATMA.

KCW, in turn, declared, that denies the existence of schemes for withdrawing funds to the accounts of Russian enterprises and the facts of purchases at an inflated cost, and the above-mentioned holder of 25% of the shares has no influence on the operation of the enterprise.

As GMK Center reported earlier, according to the head of the board of Ukrzaliznytsia, Olexandr Kamyshyn, US plans to become the management company of part of the Kryukovsky Carriage Works arrested by the Kyiv City Prosecutor’s Office. The railway operator intends to claim the arrested shares after their transfer to ATMA.

In 2021, KCW reduced the production of freight railcars by 36.2% compared to 2020 – to 1,001 units.