Private investments and flexible rates: How the new law will transform the railway industry.

The new version of the law provides for free market pricing for transportation, with the exception of tariffs regulated by the government. Specifically, government regulation will remain in place for passenger transport (excluding emergency and high-speed trains), as well as for the use of public infrastructure and locomotives. Losses from such transportation will be compensated from the state budget.

The law also anticipates attracting private investments for the construction, reconstruction, and modernization of railway transport facilities, including through public-private partnership (PPP) mechanisms. Private partners will be granted the opportunity to manage facilities under lease, ownership, or use rights for the duration of the PPP or concession agreement.

Special attention is given to owners of non-public railway tracks, who will be able to provide paid services for parking, delivery and cleaning of wagons and containers, loading-unloading, and receipt-issuance of cargo. The fees for these services will be regulated by competition legislation.

The statute of limitations for breaches of obligations under the cargo transportation contract, postal and courier shipments is set at one year, while for the transportation of passengers, luggage, and cargo baggage, it is six months. For claims unrelated to the transportation contract, this period is two months.

The document also defines the right of certain categories of passengers to free travel by rail.

The new law will come into effect on January 1, 2025, however, the main part of its provisions will start to apply from May 29 — six months after the official publication.