The updated legislation, replacing the existing law from 1999, aims to promote market principles in railway transportation and encourage private entrepreneurship. The reforms also pave the way for increased foreign investment and expanded international cooperation in railway services, while facilitating public-private partnership projects in the sector.

A key feature of the new law is the shift away from state regulation of tariffs for freight transportation and high-speed passenger trains. Tariffs for these services will now be determined based on market conditions. However, to support domestic passenger transport on regular trains, the law introduces a compensation mechanism. Losses incurred by providing these services will be covered by the State Budget.

Additionally, the law defines how investment will be directed towards railway infrastructure, specifying funding sources for the construction and renovation of railroads and stations. It also clarifies the rights and responsibilities of both transport operators and infrastructure owners in the use of public railway networks.

The legislation must now be signed by the President to come into effect.

The Ministry of Transport had previously published a draft of the new law in December 2023, which introduced several important changes, including provisions for non-public railway transport.