Resolution of the Infrastructure Ministry of Ukraine No. 357 dated October 20, 2017 amending the coefficients applied to the tariffs for freight transportation in Ukraine and services affiliated with them entered into force on October 31, 2017.

The press service of public joint-stock company Ukrzaliznytsia reported that the resolution was published in the Uriadovy Kurier government's newspaper on October 31. The resolution introduces the 15% indexation of the tariffs.

Acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said that the 15% increase in the tariffs for freight transportation is a compromise found during a long dialog between the company and market players.

All funds from the indexation of the tariff will be accumulated at a separate investment account and the company will report on the use of these funds.

"Thanks to the openness, we have managed to reach a consensus in negotiations with the business on indexation of the tariffs. We will, in particular, inject the funds from indexation to the modernization, construction and purchase of rolling stock, as well as infrastructure. The program for the renewal of rolling stock until 2021 provides UAH 108 billion for this purpose. This is a significant investment that the industry has not had for a long time. It will help stabilize its work, increase traffic volumes and strengthen the economy of Ukraine," Kravtsov said.

Ukrzaliznytsia said that earlier the freight tariffs changed in April 2016, since then the prices for products consumed by the industry have increased significantly.

"The industrial products price index, even if the tariffs are indexed, remains higher than the growth in the cost of rail transportation, and freight tariffs will grow only by 2.5% in 2017. The company's development strategy until 2021 is indexation of tariffs at the level of growth of the industrial products price index, while in fact only 28% of the needs of Ukrzaliznytsia will be covered by the tariff change," the company said.