The Ukrainian Metal

Ukraine: metal makers call for 2-year moratorium on railroad tariff increase

Increase of railroad cargo transportation by 37%, planned by Ukrzaliznytsia, will have catastrophic consequences for the economy, as it will lead to shut down of strategic enterprises and to the drop in revenue.

Taking into account the state of the domestic industry, the government must impose a two-year moratorium on the increase of Ukrzaliznytsia tariffs and carry out the audit of the state enterprise over the uncontrollable growth of expenses.

This is stated in a letter of Ukrmetallurgprom enterprises to the Prime Minister Denis Shmyhal and the vice prime minister on restoration, minister of communities and territories development Oleksiy Kuleba.

In Ukraine, railroad is the main way to transport cargo. While in Germany its share does not exceed 20%, in Ukraine railroad accounts for 82% of cargo and 36% of passenger transportation.

In 2021-2022, Ukrzaliznytsia increased transportation tariffs for coal and ore by 140% and metal – by 70%. (Ukrainian metal)

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