Ukrzaliznytsia freight transportation tariffs may be increased by 45% - Reuters
Kyiv • UNN
Ukrzaliznytsia plans to raise freight tariffs by 45% to cover its deficit. This is necessary for debt restructuring and recovery following shelling attacks.
Ukraine's state railway must raise its freight tariffs by at least 45% this year to help restore its financial standing and complete debt restructuring following a sharp escalation of Russian attacks on its infrastructure, Ukrzaliznytsia CEO Oleksandr Pertsovskyi told Reuters, UNN reports.
Details
Ukrzaliznytsia CEO Oleksandr Pertsovskyi told Reuters that an increase in freight tariffs is necessary, arguing that the railway can no longer subsidize other sectors of the economy at the expense of its own resources.
"We understand the difficulties faced by some sectors of the economy. We understand that they have all been affected by rising energy prices... but the railway cannot continue to subsidize them," he said.
Pertsovskyi stated that tariffs need to be increased by at least 45%, which would cover approximately half of the company's projected deficit of 26 billion hryvnias ($587 million).
"45% is not enough because we have a significant gap, but we understand that this is a compromise solution that allows us to at least hold on," Pertsovskyi said.
The tariff hike is important not only for liquidity but also for negotiations with bondholders regarding debt restructuring and for the company's ability to secure new loans, the publication notes.