15:12 24.03.2017

Ukrzaliznytsia denies provision of preferences for transit of iron ore from Russia

1 min read
Ukrzaliznytsia denies provision of preferences for transit of iron ore from Russia

Public joint-stock company Ukrzaliznytsia has denied accusations of providing preferences for transit of Russian iron ore.

"Now the level of transit tariffs if we compare them for similar distances for this cargo is higher by $5.60-7.50 per tonne in contrast to domestic transportation. Even if the domestic tariffs are indexed, the tariff for iron ore transit would remain high," the company said.

Ukrzaliznytsia said that the actual difference between transit and domestic tariffs is from $7.60 to $12.80, and the situation for domestic producers is more favorable, as for exports the distance is 20-70% less than for transit transportation. These are smaller transportation expenses.

"Media publish the misinterpreted assessment of the influence of the tariff indexation on operations of Ukrainian enterprises and no grounds for the loss of the market share by the enterprises are presented. Actually, national producers have privileges compared to Russian producers, which products are exported across Ukraine and they pay transportation fees on the territory of own country and transit fees in Ukraine. Transportation spending for national producers of iron ore are 63-81% less compared to Russian ones," the company said.

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