Ukrainian Railways hires Rothschild&Cie to help it with debt restructuring

MOSCOW. March 12 (Interfax) - The Service Support Center branch of Ukrainian Railways (Ukrzaliznytsia) signed a UAH 198.88-million contract with French company Rothschild&Cie in February 2026 on helping the Ukrainian national railway operator manage its debt through 2028, Ukrainian media reported with reference to information in the ProZorro system.

"Given its financial situation, Ukrzaliznytsia is in need of a comprehensive restructuring of its [loan-participation notes] LPN [Eurobonds]," it said.

These measures have to be taken following Ukrainian Railways' placement of Eurobonds worth $1.055 billion.

The size of payments to Rothschild&Cie for its services under the contract is in line with market practices with regard to such services, their difficulty and volume, according to the information. The French company will be paid only if the debt restructuring is successful.

According to the ProZorro system, Rothschild&Cie was hired at the Ukrainian government's direction without any competitive process.

Rothschild&Cie is the flagship of the Rothschild banking group controlled by the French and British branches of the Rothschild family. The company, headquartered in Paris and London, specializes in investing in private and alternative assets.

Ukrainian Railways said in January 2026 that it was suspending $45 million in coupon payments on its 2026 and 2028 Eurobonds, due on January 9 and January 15, respectively, announcing plans to start a comprehensive restructuring of its financial obligations on bond-related loan agreements, also hiring qualified financial and legal advisors.

Among the main reasons for the suspension, the company listed the continuing decline in revenue from cargo transportation and the reduction in cargo shipping, which will be around 17% in 2025.

In February 2026, Fitch Ratings downgraded Ukrainian Railways' Long-Term Issuer Default Rating (IDR) to 'RD' from 'C' and the long-term rating of its Loan-Participation Notes (LPNs) due in 2026 and 2028 to 'D' from 'C'.

In January-September 2025, Ukrainian Railways' income from its routine operations dropped 15.4% year-on-year to UAH 66.03 billion. The company posted a net loss of UAH 7.32 billion against a net profit of UAH 1.66 billion in January-September 2024.

Its income from freight and mail transportation in the reporting period decreased by 19% to UAH 50.1 billion, and income from other services fell by 14.7% to UAH 6.36 billion.