Analysts of the Economic Security Bureau of Ukraine have identified a risk of losses to Ukrainian Railways when selling crushed stone products - they were sold to private business entities under direct contracts at prices 2.5 times lower than market prices.

To establish the amount of damage caused the ESBU requested information from Ukrainian Railways on the volume and value of goods sold to private business entities.

Analysts compared the data and found that prices were 2.5 times lower than market prices on average, meaning that the amount of profit lost by Ukrainian Railways over just 6 months could reach UAH 75 million.

The Bureau's experts sent proposals to the Cabinet of Ministers of Ukraine, the Ministry of Economy, the Ministry of Infrastructure and JSC Ukrainian Railways to strengthen control over the production and pricing of crushed stone products and to amend the Procedure for Disposal of Property of the Joint Stock Company Ukrainian Railways.

At the same time the analysts recommended expanding the list of property sold on a competitive basis and introducing a tender procedure for the sale of crushed stone products.

The government took into account the Bureau suggestions and made appropriate changes to the regulations.

The Cabinet of Ministers also ordered to launch an audit of Ukrainian Railways performance based on the ESBU recommendations.