Ukrainian Railways continues to be effected by the Covid-19 pandemic shock to Ukraine’s economy,

including a GDP contraction of 4.2% in 2020, ongoing lockdown measures and currency depreciation. “We project the economy to rebound in 2021 with growth of up to 4.1%, but there are material downside risks to our forecasts, given the uncertainty around the duration of the pandemic. Accordingly, UR’s main revenue driver (the freight segment) has been negatively affected in 2020 with significant downside risk to the pace of the recovery in 2021,” Fitch has assessed.