Ukrainian Railways Proposes 30% Hike in Freight Tariffs

Response from the Chairman of the Association of Car Owners

According to Главком: Oleksandr Kryvoruchko, who heads the Association of Car Owners, has weighed in on Ukrainian Railways' plan to increase freight tariffs by 30%. He stressed that without ongoing dialogue with the business community, the company cannot operate effectively. Kryvoruchko emphasized that financial shortfalls should not be resolved by passing costs onto cargo shippers, as Ukrainian Railways' performance affects not just transportation but the entire national economy-including industry, agriculture, and construction.

Examples from European Countries

Kryvoruchko pointed to European nations such as Germany, Austria, France, and Italy, where state funding supports the development of railway infrastructure. He noted that in Ukraine, by contrast, cargo shippers bear the primary financial burden of maintaining the railway system. Industry association representatives have declared that a 30% tariff increase lacks economic justification.

'Without dialogue with clients, it is categorically impossible to build effective cooperation within the complex system of freight transport,' said Oleksandr Kryvoruchko.

He added: 'Dialogue is essential. What's more, it has been essential for a long time.' Previously, agricultural businesses urged Prime Minister Yuliia Svyrydenko and Minister Oleksii Kuleba to block the tariff hike, underscoring the need for constructive communication between Ukrainian Railways and the business sector to ensure industry stability.

The proposed freight tariff increase by Ukrainian Railways has sparked concern among business representatives, who argue that without proper dialogue and consideration of all market participants' interests, the move could negatively impact the broader economy. Given the critical role of rail transport for agriculture and industry, such changes could raise operational costs for enterprises, ultimately affecting consumer prices. Government authorities are urged to weigh these arguments to avoid adverse social and economic consequences.

As the freight tariff discussions unfold, it's important to note that the situation mirrors previous challenges faced by businesses, particularly in light of the recent proposals for a significant increase in rail freight costs by Ukrzaliznytsia. This ongoing dialogue highlights the necessity for collaborative efforts between Ukrainian Railways and the business community to prevent adverse effects on the economy.