Audit of Ukrzaliznytsia Must Precede Any Tariff Hikes, Say Critics

Economist Weighs In on Ukrzaliznytsia’s Proposal

According to Главком: Economist Andriy Novak has voiced his stance on Ukrzaliznytsia’s plan to raise freight transport prices, stressing that a comprehensive company audit and a clear state policy in this area are essential first steps. He pointed out that since the start of the full-scale war, the railway operator has suffered significant infrastructure damage, had to reroute logistics, and incurred extra costs for repairs and maintaining uninterrupted operations.

Novak highlighted the railway’s critical role as a logistics backbone, especially given current restrictions on maritime shipping and the complete halt of air travel.

“We need to understand why this specific level of tariff adjustment is being proposed. To do that, we must see the company’s financial indicators and assess its real operational state,” said Andriy Novak.

The economist also emphasized that the government must first decide how much it is willing to support passenger or freight transport before discussing economically justified tariff levels.

Transport Employers’ Federation Urges Restraint

The Federation of Transport Employers of Ukraine (FRTU) has called on the government to refrain from raising Ukrzaliznytsia’s freight tariffs in 2026. In his comments, Andriy Novak also stressed the need for a clear understanding of both the railway’s internal economics and the state’s policy on transport development:

“To make balanced decisions, we first need a clear picture of Ukrzaliznytsia’s finances and the government’s policy on transport development,” he noted.

As a result, discussions around increasing Ukrzaliznytsia’s freight tariffs have raised many questions and underscore the need for a thorough analysis of the situation. Given the country’s challenging economic climate, state support and well-considered tariff policies are becoming increasingly urgent.

This situation highlights the importance of stability in the transport sector during wartime, when logistics operations are critical to the economy. The decisions made could have a major impact on the cost of goods and services, which in turn would affect the overall well-being of the population and business dynamics in Ukraine.

As discussions around tariff adjustments for Ukrzaliznytsia unfold, it's essential to consider the broader context of the railway's funding structure. Recent proposals suggest a transition to a funding model similar to that used in the EU, which could reshape the financial landscape for Ukrainian Railways. Understanding these changes is crucial for grasping the implications of potential tariff hikes. For more insights on this funding shift, see our article on the EU-style state funding model.