The Ukrmetallurgprom Association calls for preventing an increase in freight tariffs by Ukrainian Railways in 2026. This is stated in a relevant letter to the Prime Minister of Ukraine and the Head of the President’s Office, reported by UNIAN.
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As noted, a 37% increase in freight tariffs could lead to a reduction in Ukraine’s GDP by almost UAH 100 billion, losses of about $2.4 billion in foreign currency revenue, a decrease in budget revenues by more than UAH 36 billion, and the elimination of at least 76 thousand jobs. Meanwhile, according to business data, Ukrainian Railways is considering a 45% tariff increase, which could exacerbate the negative consequences for the economy.
The domestic mining and metallurgical complex, as stated in the appeal, despite the losses caused by the war, remains one of the key sectors of the economy, accounting for about 5.5% of Ukraine’s GDP, $6 billion in foreign currency revenue, and over UAH 150 billion in tax revenues.
However, the industry is in a difficult financial situation. Last year, enterprises had a total net loss of UAH 28 billion.
“Part of the production capacities has already been stopped, others are operating at less than full capacity. Additional increase in the transportation component may lead to the final shutdown of a number of productions,” emphasize in the industry association.
“Ukrmetallurgprom” reminded that the problem of Ukrainian Railways lies not in the freight segment, which remains profitable, but in the chronic loss-making of passenger transportation.
Moreover, the cost of railway transportation in Ukraine already exceeds similar indicators in some EU countries. In particular, the cost of transporting metal products by rail, taking into account the wagon component, is already higher than by road transport. This stimulates the transition of goods to roads and creates additional pressure on road infrastructure.
The negative consequences of tariff increases will also be felt by Ukrainian Railways itself. In “Ukrmetallurgprom,” it is believed that this throws the company into a so-called tariff spiral, where each new price increase leads to a reduction in the freight base and requires further tariff hikes.
The association of enterprises called on the government to introduce a moratorium on increasing freight tariffs until the end of the state of war, provide compensation for losses in passenger transportation at the expense of the state budget, attract international financing for the restoration of railway infrastructure, and create conditions for the resumption of industrial enterprises that form the main freight base of Ukrainian Railways.