Business

EBA calls for lifting restrictions on the operation of foreign railway wagons in Ukraine

EBA calls for lifting restrictions on the operation of foreign railway wagons in Ukraine
Article top vertical

The European Business Association (EBA) has called for the cancellation of restrictions on the use of foreign wagons in Ukraine. 

It is important to note that the ban on the use of foreign wagons in Ukraine was set to come into effect on March 16, but Ukrzaliznytsia had announced plans to delay it. The European Business Association, in turn, reported that starting from March 16, foreign railway wagons, as well as wagons belonging to other railway administrations, would only be allowed for international cargo transportation.

In the view of businesses, such restrictions create unequal conditions in the domestic market, as they do not apply to foreign wagons managed by Ukrzaliznytsia. According to the companies that are members of the Association, this is not the first attempt by Ukrzaliznytsia to stop the operation of freight wagons belonging to foreign railways. Similar events occurred in September 2024, but after strong reactions from the business community and relevant associations, the decisions were suspended.

Experts from the Association assert that the issue of operating domestic freight wagons within Ukraine, including those registered by railway administrations in the CIS and Baltic countries (excluding sanctioned states), is fully regulated by national legislation.

Since the beginning of Russia's full-scale aggression against Ukraine, Ukrainian shippers and operators have been forced to use wagons from European countries, including the Baltic states. They invested in the repair and operation of these wagons due to the critical shortage of functioning rolling stock from Ukrzaliznytsia, slow speeds on the network, and uncompetitive rates for using Ukrzaliznytsia's own wagons. These actions helped ensure uninterrupted cargo transportation that the national carrier could not fully carry out.

"The newly imposed restriction on the use of foreign wagons has caused concern and confusion among freight shippers and wagon operators. In their view, these measures lack sufficient justification and could lead to an artificial shortage of loading capacity, anti-competitive practices in the market, higher transportation costs, and a decline in the global competitiveness of Ukrainian goods," the post notes.

The business community has requested relevant authorities to provide clarification on the situation for market participants, shippers, and operators. Additionally, the Association is asking for the suspension of the mentioned restrictions while the situation is being investigated.

Experts from the European Business Association propose discussing the possibility of using rolling stock from other railway administrations in accordance with a typical agreement on the use of freight wagons in Ukraine's domestic rail transport and ensuring their interoperability.

Share this article

Facebook Twitter LinkendIn