Ukrzaliznytsia returns over UAH 2.6 million owed for spare parts delivered

Subject of Complaint: Southwestern Railways, a regional railway operator; Ukrzaliznytsia, the national state railway operator; Ministry of Infrastructure
Complaint in brief: On May 26, 2015, the BOC received a complaint from a company about problems with the Southwestern Railways, a regional operator under Ukrzaliznytsia. The Complainant supplied spare parts to Southwestern, but the railway had not paid it in full. As a result, UAH 2,633,571.36 in debt had accrued that Southwestern continued to refuse to pay.
Action taken: The BOC reviewed the case and determined that Southwestern did have an outstanding debt with the Complainant. The BOC then arranged a meeting with representatives of the railway operator. At the meeting, the investigator was informed that simultaneously with the BOC investigation, Southwestern had reached an agreement with the Complainant to repay a smaller debt in the near future. However, the operator again failed to repay the agreed smaller debt and left the BOC’s multiple requests unanswered. The BOC then turned to the parent company, Ukrzaliznytsia.
Result achieved: As a result of BOC’s intervention, Ukrzaliznytsia returned UAH 2,083,903 of the outstanding debt to the Complainant.

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