Abstract
<jats:p>The article provides a fundamental study of theoretical, methodological, and applied aspects of the integration of Ukraine’s railway transport into the Single European Railway Area. Based on a deep analysis of the EU regulatory framework, particularly the Fourth Railway Package, and national legislation, the lack of alternatives to the structural reform of JSC “Ukrzaliznytsia” through the mechanism of organizational unbundling is substantiated. The concept of “digital decoupling” is comprehensively examined as a critical tool for transforming a natural monopoly, allowing for the modernization of obsolete legacy systems without risk to operational stability and ensuring technical interoperability with European systems. A detailed analysis of the economic consequences of the transition from a cross-subsidization model to transparent pricing and direct public service obligations (PSO) subsidies has been conducted. A conceptual model of the organizational-economic mechanism has been developed, based on a triad: infrastructure integration, management segregation, and digital modernization. It is proven that only the synergy of these components can ensure the competitiveness of the Ukrainian railway in the context of post-war recovery and global competition.</jats:p>