The government is considering raising freight tariffs of Ukrzaliznytsia - Svyrydenko
Kyiv • UNN
The Cabinet of Ministers is considering a phased increase in freight tariffs of Ukrzaliznytsia: by 30% from August 1 and another 15% from January 1. Prime Minister Svyrydenko announced consultations with businesses and possible compensation mechanisms.
The Cabinet of Ministers is discussing compensation mechanisms due to the possible increase in freight tariffs of "Ukrzaliznytsia" (UZ). This was reported by Prime Minister Yuliia Svyrydenko, answering a question from People's Deputy Musa Magomedov during the "Question Hour to the Government" in parliament on July 3, reports UNN.
According to the head of the Cabinet of Ministers, government officials are in constant dialogue with businesses regarding the possible increase in tariffs. Currently, the option of indexing tariffs by 30% from August 1 and another 15% from January 1 is being discussed.
Details
During the "Question Hour to the Government," People's Deputy Musa Magomedov drew the government's attention to the draft order of the Ministry of Communities and Territories Development regarding the increase in freight railway tariffs. According to him, such a decision could become an additional blow for enterprises that are already operating in the difficult conditions of the full-scale war.
On June 19, the Ministry of Development published a draft order on increasing freight railway tariffs by 30% in August. This is in the conditions of a large-scale war, when the country's enterprises are barely surviving. Metallurgy, the mining industry, the ferroalloy industry, the cement and construction industries are in an extremely difficult situation
He noted that the new tariff increase could have serious consequences for the economy.
Today they are simply unable to withstand the new tariff blow, which could provoke a reduction in exports by approximately $2 billion and a drop in revenues to the state budget by UAH 40 billion
Magomedov asked whether the government had conducted an independent assessment of the macroeconomic impact of such a decision, who would bear personal responsibility for the consequences for enterprises, and whether the government was ready to return the project for additional review.
In response, Prime Minister Yuliia Svyrydenko stated that the issue of tariffs is complex, and consultations with the market have been ongoing for at least six months.
We have already been holding consultations with the market, with farmers, with metallurgists, with all those who use the services of "Ukrzaliznytsia" for at least six months
According to her, without increasing tariffs, "Ukrzaliznytsia" remains a loss-making enterprise. At the same time, the government plans to submit a bill to the Verkhovna Rada by the end of the year regarding special obligations for the company, which should provide for compensation for the cost of passenger transportation.
Our task as a government is to submit to the Rada by the end of the year and we will ask the people's deputies to support the law that will impose special obligations on "Ukrzaliznytsia" and we will compensate for the cost of passenger transportation. This year it is at least UAH 16 billion
Svyrydenko added that among the options discussed with the market was a simultaneous increase in tariffs by 45%. However, after consultations, the government settled on a phased approach.
We heard the market, we understood that it is extremely difficult for entrepreneurs to work in wartime conditions. There is a decision, and now a public discussion is underway to raise tariffs by 30% from August 1, and then by 15% from January 1
She also reported that the government is ready to consider compensation mechanisms for businesses and is already discussing them with the Ministry of Finance.
Svyrydenko explained that it is difficult to fully cover the needs of "Ukrzaliznytsia" from the state budget, since most expenditures are directed to the security and defense sector.
Why can't we just take money from the state budget? Firstly, the budget is limited and mostly directed to the security and defense sector — 90%
The head of the government emphasized that "Ukrzaliznytsia" should receive a more sustainable financial model, in particular because the company cooperates with international financial institutions and is a borrower.
The model of "Ukrzaliznytsia," which has not provided for a tariff revision even once in the last four years, looks very unsustainable, fragile, and unstable. In view of this, it requires, firstly, an increase in tariffs, and on the other hand, internal changes in "Ukrzaliznytsia" and a review of routes
Context
In June, the Ministry of Development published a draft order on revising the coefficients applied to tariffs for the transportation of goods by rail within Ukraine. The document provides for an increase in freight transportation tariffs by 30% from August 1, 2026.
The authors of the draft also propose to unify the tariffing of empty wagon transportation. According to specialized transport publications, for some such transportation, this could mean a cost increase of 60%.
In "Ukrzaliznytsia," the need to revise tariffs is explained by the deterioration of the company's financial condition, a reduction in the freight base, rising costs, and the fact that freight tariffs have not been revised since 2022.
The company also points out that after the start of the full-scale war, a significant part of the railway infrastructure was damaged due to Russian attacks, and passenger transportation remains socially important but unprofitable.
According to the Ministry of Development, in 2026 the government has already provided UAH 16 billion for the mechanism of state order for passenger railway transportation. This mechanism is supposed to compensate "Ukrzaliznytsia" for the difference between the actual cost of transportation and revenue from ticket sales at socially affordable tariffs.
At the same time, business associations and industry representatives criticize the sharp increase in freight tariffs. They warn that the growth in logistics costs could worsen the situation for exporters, industrial enterprises, and farmers who are already operating under conditions of war, labor shortages, infrastructure destruction, and unstable foreign trade.
Among the risks that business representatives cite are a reduction in exports, a decrease in foreign currency earnings, a drop in tax revenues, and additional pressure on enterprises with a high share of transport costs in the cost of production.
The issue of tariff increases is currently at the stage of public discussion.