Ukraine's leading industrial associations and business groups oppose a significant and unjustified increase in freight transportation tariffs proposed by Ukrainian Railways (Ukrzaliznytsia), arguing that it would deal another blow to the Ukrainian economy.
Business representatives voiced this position during the press conference "A Tariff Blow to the Ukrainian Economy: Leading Industries Oppose Unfair Increases in Ukrzaliznytsia Freight Tariffs," held at Interfax-Ukraine on Tuesday.
Oleksandr Kalenkov, president of Ukrmetalurgprom, said that the draft order on tariff increases has not yet been published, although the issue is being actively discussed. He stressed that Ukrzaliznytsia is a state monopoly and that corruption remains a concern within the company. According to him, the company should operate transparently, while oversight should be carried out by an independent body – the National Commission for State Regulation in the Transport Sector, the creation of which has been discussed in Ukraine for the past 17 years.
"We hope that any decision on tariff increases will be objective. Freight transportation has always been profitable. In particular, Ukrzaliznytsia's operating profit amounted to UAH 20 billion in 2024, profitability was maintained in 2025, and we also expect the company to remain profitable this year. This is despite freight volumes declining from 315 million tonnes in 2021 to 160 million tonnes in 2025," Kalenkov said.
He added that businesses are trying to maintain a constructive dialogue with the company. There is, in particular, the issue of subsidizing passenger transportation, but passenger services should not be subsidized at the expense of private businesses and instead should be financed from the state budget. At the same time, businesses may be willing to contribute support funds.
"Ukrzaliznytsia has opportunities to improve efficiency through its operating activities. It also has access to external borrowing, while private businesses currently do not. Therefore, let us solve these issues together instead of making decisions quietly behind closed doors," the head of Ukrmetalurgprom urged.
Kalenkov added that a joint appeal to the government would be prepared following the press conference.
"We are prepared to accept tariff increases of no more than 10%. Ukrzaliznytsia itself should focus on improving efficiency. What is needed is a normal and open discussion of the situation in freight transportation," he concluded.
Pavlo Kachur, head of the Association of Cement Producers of Ukraine (Ukrcement), stated that the situation with transportation tariffs is becoming threatening not only for specific industries but for Ukraine's economy as a whole.
"We support tariff increases, but only if they are justified. Tariffs should be balanced and reasonable. Nobody is interested in the collapse of any industry," Kachur said.
The head of Ukrcement proposed several solutions, including allowing private locomotive traction operators access to rail transportation. According to him, locomotives cannot currently be found for 50 trains awaiting transportation. Kachur also emphasized the need to raise wages for locomotive engineers and other Ukrzaliznytsia employees, as well as to address the issue of passenger transportation, particularly suburban services.
He also advocated anti-crisis measures and called for Ukrzaliznytsia to disclose how the funds generated by tariff increases would be used.
"We support having Ukrzaliznytsia present a rolling stock renewal program. We also support establishing freight delivery performance indicators so that the railway company reports on them," Kachur explained.
Serhiy Kudriavtsev, executive director of the Ukrainian Ferroalloy Producers Association (UkrFA), supported proposals concerning tariff regulation and the resolution of cross-subsidization issues. At the same time, transportation costs are of particular importance for ferroalloy enterprises located in areas affected by active hostilities.
"The cost of transporting manganese to Nikopol has increased fivefold. This is a matter of survival for our enterprises," Kudriavtsev said.
Volodymyr Husak, director general of the Federation of Transport Employers of Ukraine, expressed surprise at Ukrzaliznytsia's plans to raise tariffs.
"This is yet another attempt by Ukrzaliznytsia to increase freight tariffs: by 30% as early as August 2026 and by another 15% from January 2027. In other words, almost 50%. This reflects a complete misunderstanding of current realities," Husak said, adding that the main problem remains chronic losses from passenger transportation.
At the same time, freight volumes continue to decline. According to him, every tariff increase forces businesses either to reduce transportation volumes, switch to alternative modes of transport, or shut down operations altogether.
"In the current situation, we believe a moratorium on railway tariff increases should be introduced until the end of the war," Husak said.
Kostiantyn Saliy, president of the Ukrainian Union of Building Materials Manufacturers, said that in developed countries tariff increases are adopted only after consultations and always receive heightened public attention.
"In the EU, price increases of 2-3% trigger significant public dissatisfaction. Here we are talking about an immediate 30% increase. This will create a chain reaction in prices. First we will feel it, and then consumers will," Saliy predicted.
He added that Ukrzaliznytsia could receive support through land taxes, the development of retail trade at railway stations, and other sources rather than through tariff increases. The company should optimize its administrative staff and operating expenses. Passing its problems on to Ukrainian citizens and Ukrainian businesses is the wrong approach, Saliy concluded.
Oksana Nechai, railway logistics specialist at Kovalska Industrial and Construction Group, noted that every increase in production costs is almost tragic for her company.
"It will lead to the loss of customers, and we operate in the domestic market. It will also result in lower budget revenues. Another increase could drive part of the industrial sector out of business. Both we and Ukrzaliznytsia lose from this. We are not opposed to increases, but they must be justified because we are interdependent," Nechai said.
Ksenia Orynchak, executive director of the National Association of Extractive Industries of Ukraine (NAEIU), reported that representatives of the mining industry held an informal meeting last week and also sent appeals to the prime minister, the Ministry for Development, and the State Regulatory Service calling for railway tariff increases to be prevented.
"We outlined the negative consequences. At the same time, the EU is currently focusing on environmental issues. Ukraine is moving in the opposite direction by shifting freight transportation from rail to road transport because of Ukrzaliznytsia's position," Orynchak said.
She proposed that the joint appeal resulting from the press conference should emphasize the need to move toward environmentally sustainable policies while taking into account the EU's Carbon Border Adjustment Mechanism (CBAM).
