NADPU Association Appeals to the Cabinet
The NADPU Association has formally urged Prime Minister Yuliia Svyrydenko to block any increase in freight rail tariffs for 2026. Its concerns were also directed to Deputy Prime Minister Oleksii Kuleba, Finance Minister Serhii Marchenko, Economy, Environment and Agriculture Minister Oleksii Sobolev, and Oleksiy Kucher, head of the State Regulatory Service. The association warns that raising freight rates could severely damage Ukraine’s mining sector, overall economy, and defense capabilities.
Economic Fallout from Tariff Hikes
According to the association, Ukrzaliznytsia’s passenger segment posted losses of UAH 20 billion in 2025, with projected losses climbing to UAH 25 billion in 2026. Logistics costs account for roughly 40% of production expenses in the mining industry. The broader economic impact of higher tariffs would be a UAH 100 billion hit to Ukraine’s GDP, alongside a UAH 36 billion reduction in tax revenues. Freight volumes have already dropped over 45% compared to 2021, and labor productivity at Ukrzaliznytsia stands 20% lower than before the full-scale war.
NADPU stresses that “further increases to already high rail tariffs, without systemic efforts to end cross-subsidization of passenger services, expand Ukrzaliznytsia’s freight base, significantly cut its costs, or reform its structure, could have dire consequences for the mining industry and Ukraine’s overall defense readiness.”
The association calls for specific actions:
- The state must assume responsibility and provide necessary funding to stabilize Ukrzaliznytsia’s operations.
- Protect the interests of citizens using passenger rail services.
- Enable businesses to offset rising losses.
Without addressing these systemic issues, NADPU argues, Ukrzaliznytsia will continue losing its freight base, and raising tariffs again would be “a path to the abyss.” This contrasts with the EU, which is creating incentives to shift cargo back to rail as a more environmentally friendly transport mode.
The association therefore advocates for expanding the freight base, fully state-funding passenger services in 2026, optimizing the company’s expenditures, and securing assistance from international partners.
This appeal underscores the severe economic challenges Ukraine faces in its rail sector, especially during wartime. A freight tariff hike could ripple through the entire economy, hitting the mining industry—a critical sector—particularly hard. The government’s response to these proposals on funding and cost optimization may well determine the future stability of Ukraine’s railway infrastructure.