On the decision
JSC "Ukrzaliznytsia" reported that it will not make coupon payments totaling $45 million, which were due on 9 and 15 January for two eurobond issues maturing in July 2026 and November 2028. The information was published by the issuer Rail Capital Markets plc on the Euronext exchange.
Why it happened
According to chairman of the board Oleksandr Pertsovskyi, the suspension of coupon payments is the start of negotiations with holders of debt instruments on a comprehensive debt restructuring. The company has engaged financial and legal advisors to prepare the process.
"Recently our sovereign, Ukraine, was in the same position regarding GDP warrants... Ukraine carried out what the market considers a fairly successful, efficient restructuring, and emerged from it having saved significant funds for taxpayers. That is, in fact, the trajectory we are on."
— Oleksandr Pertsovskyi, chairman of the board of JSC "Ukrzaliznytsia"
Context: war, infrastructure, revenues
In 2025 the company recorded 1,195 attacks on its infrastructure — more than in 2023 and 2024 combined. This requires substantial resources to restore tracks, rolling stock and logistics. At the same time, Ukrzaliznytsia notes a systemic decline in freight flows in the coal and metallurgical sectors and increased difficulty exporting due to strikes on ports.
Financial performance and obligations
Under current conditions the company would have to pay nearly $800 million during 2026 — an amount Ukrzaliznytsia considers unrealistic in wartime. The principal debt on the eurobonds is about $703.2 million (maturing 2026) and $351.9 million (maturing 2028).
"This is a selective pause on expensive debt instruments so as not to drain liquidity at a time when resources are critically needed."
— Oleksandr Pertsovskyi, chairman of the board of JSC "Ukrzaliznytsia"
Impact on operations and public commitments
Ukrzaliznytsia emphasizes that the decision will not affect operational activity: the company will continue to pay salaries, taxes and fees, and will continue servicing obligations to international financial institutions that fund specific targeted projects.
What it means for the market and citizens
First, it is an example of prioritizing national security and logistics resilience: during a period of heightened infrastructure risk, preserving liquidity directly affects the ability to transport cargo and repair damaged sections.
Second, for investors it signals the start of a negotiation process with various possible scenarios: further extensions, changes to coupon policy, or alterations to capital structure including partial repayment or exchange. Analysts believe that technical non-payment of coupons in such circumstances is often market practice rather than a step toward the issuer's complete collapse.
What comes next
The coming weeks will be spent negotiating with bondholders and implementing actions by Ukrzaliznytsia's advisors. The key question is whether it will be possible to agree on a restructuring that balances creditors' interests, preserves operational capability and minimizes pressure on the state budget. For citizens it is important to monitor two things: whether regular passenger and freight services will be maintained, and how changes will affect taxpayers' costs.
Summary: this is not the "endgame," but the start of negotiations under difficult conditions. How transparently and quickly the talks proceed will determine both Ukrzaliznytsia's financial stability and the network's ability to sustain logistics critical to the economy and the country's defense.
