The Ukrainian Cabinet has dismissed Borys Ostapenko from the post of general director of the state railways administration, Ukrzaliznytsia.
By law, pending a new appointment, the vacancy is to be filled by the general director's first deputy. This post is currently held by Maksym Blank.
Prime Minister Arseniy Yatseniuk ordered an inquiry into Ukrzaliznytsia's financial performance in September 2014. Ostapenko was suspended as general director pending the inquiry, earlier reports said.
The inquiry had been prompted by information about suspected corrupt deals run by the railway administration, provided by law enforcement agencies. A commission was set up by the Financial Infrastructure Ministry to probe the allegations.
Ostapenko was appointed Ukrzaliznytsia head on April 1 2014.