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"It was not in vain that I had invited the Ukrzaliznytsia head today. The country can see the real state of affairs in the company that is fated to be success and a billionaire, but it is chronically mantled with corruption, ineffectiveness and theft. It was pushed over the edge," the prime minister said.

Groysman said that today a challenge before the new managers is serious, as internal sabotage and other obstacles hinder making quick and efficient decisions.

"We are to ensure support of initiatives that would help the company to become transparent and open. What I have seen in the plan – modernization, purchase of wagons, changes to the fuel procurement system – should permit making the company a champion. We need to toughen management and permit them to develop normally, quickly change the supervisory board and introduce independent and professional people there," he said.

"I am ready to support the initiatives to implement this plan. I am ready to destroy any mafia that could approach to Ukrzaliznytsia," he said.

Balczun at the government meeting on Wednesday, November 2, said that in 2017 Ukrzaliznytsia intends to sharply increase investment in repair of wagons and locomotives aimed to restoring the company's potential as the only largest carrier in Ukraine.

"Our investment plan for next year is over UAH 26 billion. This is large growth compared to 2016. We would build 3,000 wagons at our bases, buy 3,600 wagons using the credit line of the EBRD [European Bank for Reconstruction and Development] and repair 34,000 wagons," he said.

He also said that Ukrzaliznytsia seeks to implement a large project to modernize passenger cars.

"Next year we would carry out deep modernization of 200 passenger cars and buy six rail buses. We plan to repair 360 locomotives and we will buy, not repair, 15 additional locomotives using the crediting line from KfW," he said.

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