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losses (assets, warehouses) already amount to approximately $10B.
9.1.3 Transport sector news
● Trains
Ukrainian Railways returns to 40% of pre-war freight traffic. In May, Ukrainian Railways (UZ) has already transported 300-310,000 tons of cargo per day, which is about 40% of the pre-war figure, announced CEO Alexander Kamyshin. According to him, before the war, UZ loaded an average of 700,000 tons of cargo per day. In the first days of the war, this figure dropped to 150,000 tons. And in March, it was possible to load 250,000 tons daily, in April, 295,000 tons, and from the beginning of May, 300-310,000 tons. The most significant growth has been recorded in grain transportation, an increase of 86%. In addition, the figures for transportation of construction materials have doubled. Ukrainian Railways is ready to reorient traffic from the ports of southern Ukraine to the western crossings with the EU.
The EU must address technical issues in order to transport large cargo volumes from Ukraine. Ukraine Railways (UZ) emphasizes several problems on the part of the transport system of European countries and its integration with Ukraine, which hinder the increase in the volume of cargo transportation by rail from Ukraine to Europe. One of the issues is the shortage of rolling stock, cars, and locomotives. According to Deputy Director of Ukrainian Railways Valery Tkachev, today, UZ uses only 2,000 rail cars and transports about 130,000 tons of cargo per day at the western border crossings. At the same time, UZ's capacity allows for the transport of 3,422 carts or 220,000 tons per day. According to the Ukrainian railway operator, the main problem is that the railway infrastructure of Ukraine and Europe differs significantly in track width. For the two infrastructures to be able to exchange freight, they need to carry out reloading at the border or change carts. At the same time, UZ notes that there are also not enough reloading terminals.
9.1.4 Construction & Real estate sector news
The construction of 427 residential buildings has resumed in the last month. According to the real estate portal LUN.ua, 80% of the buildings under construction are located in Vinnytsia, Volyn, Ivano-Frankivsk, Lviv, Ternopil, Khmelnytsky, Cherkasy, Chernivtsi, and Zakarpattia regions. Regions with active hostilities did not participate in the study. The Kyiv region, as the largest, has now recovered by only 12%, and the Odesa region has currently resumed about 60% of construction. As was recently reported, in April, the western parts of Ukraine recorded the first property sales since the war.
Ukrainian developers have started to resume residential construction work. According to the LUN.ua portal, 92% of residential complexes in the Cherkasy region resumed work on construction sites. As of the end of May, construction remains completely frozen in the Sumy, Kirovohrad, Mykolaiv, and Kherson oblasts. The first resumption of construction was observed in Kharkiv, Chernihiv, Bucha, and Irpen. In the capital of Ukraine, Kyiv, 17% of housing projects have resumed work, and another 20% in the Kyiv region, particularly Bucha and Irpen. Among the western regions, the lowest share of reconstruction is in the Chernivtsi region, where 62% of housing and communal services construction was resumed. The largest recovery share is
60 UKRAINE Country Report XXXX 2018 www.intellinews.com