Parliamentary Committee Advises Against Cargo Tariff Increases
A key parliamentary committee has formally recommended that the Cabinet of Ministers keep Ukrzaliznytsia's cargo rail tariffs unchanged through 2026. This advice follows hearings where data was presented on tariff increases since 2021 and the potential economic fallout from raising them further. Ukraine's economy remains heavily reliant on its rail network, especially for industrial and export sectors.
Presented figures show that since 2021, tariffs for transporting coal, ore, and limestone have surged by 140%, while tariffs for moving empty freight cars have risen by 160%. According to estimates from the state-owned enterprise Ukrpromzovnishekspertyza, a proposed 37% hike in cargo tariffs could trigger severe economic consequences, including:
- A loss of approximately UAH 100 billion in GDP;
- A reduction in foreign currency revenue of UAH 98 billion;
- A decline in budget revenues exceeding UAH 36 billion;
- The elimination of over 76,000 jobs, including 26,000 in the industrial sector.
Ukrzaliznytsia's Financial State and Proposed Support
Ukrzaliznytsia handles roughly 60% of Ukraine's domestic and international freight transport. In the first half of 2025, the company reported a loss of UAH 7.3 billion in its passenger segment, though its freight operations remain profitable. The committee has urged the government to develop a long-term mechanism to fund passenger service losses and allocate the necessary funds in the state budget. It has also proposed measures to boost the railway's efficiency through cost optimization and the implementation of automated technologies.
The goal of providing over UAH 26 billion in financial support to Ukrzaliznytsia is to ensure uninterrupted passenger transport, the delivery of humanitarian cargo, and evacuation logistics. Key industries like metallurgy, mining, chemicals, and construction materials are already operating under severe strain due to the energy crisis, labor shortages, rising costs, and the ongoing war. Therefore, supporting the national railway is seen as a critical step for maintaining stability in both freight and passenger transport across Ukraine.
The parliamentary committee's decision on freight tariffs is of major significance for Ukraine's economy, as Ukrzaliznytsia is a key transport player. Maintaining tariffs at current levels through 2026 could help avert further economic risks, particularly for industrial sectors dependent on rail.
At the same time, providing financial aid to cover Ukrzaliznytsia's losses in passenger services is deemed essential for ensuring the stable operation of national infrastructure and supporting the broader economy.