The increase in freight tariffs by Ukrzaliznytsia is unacceptable in wartime and may lead to a reduction in production and the loss of part of the industry.
This was emphasized by the president of the association of enterprises Ukrmetallurgprom (UMP), Oleksandr Kalenkov, commenting on the tariff policy of state monopolies.
The main goal of the Association of Enterprises UKRMETALURGPROM (hereinafter Association) is to provide the most favorable conditions for the effective activity and stabile development of the Ukrainian Mining and Metallurgical Complex (UMMC).
"Before the war, only the mining and metallurgical sector consumed about 60% of all electricity used by industry. And more than 40% of the traffic handled by Ukrzaliznytsia was related to our sector. But after 2022, virtually all enterprises operate in survival mode, most at a loss," Kalenkov reminded.
Despite this, the sector continues to make a significant contribution to the economy: it supports communities in frontline regions, pays taxes, ensures foreign currency inflows, and generates a multiplier effect on employment.
"Our industry creates up to 7.5–8 jobs in other sectors, and freight transportation is the main source of income for Ukrzaliznytsia," he emphasized.
Kalenkov noted that in some EU countries, freight transportation is already cheaper than in Ukraine, so Ukrzaliznytsia's initiative to raise freight tariffs is "not only economically unreasonable and unjustified, it’s simply a dead-end road."
The president of Ukrmetallurgprom pointed out that Ukrzaliznytsia’s problem is systemic, as the company effectively combines two different businesses – profitable freight and loss-making passenger transport, which generates tens of billions in losses each year.
"What does Ukrzaliznytsia do? It simply shifts these losses onto freight tariffs. They have no other choice. Although this situation is abnormal, and it’s not done this way in European countries. There, passenger transport is subsidized by the state. I think we could do the same, especially during wartime. After all, this is a social project, and the state should cover the costs," Kalenkov emphasized.
He also warned that raising freight tariffs would have the opposite effect for the company itself, as clients would begin refusing its services, and cargo flow would decrease. Thus, instead of profits, the company would again face losses and try to raise tariffs once more.
"Our enterprises will begin to reduce production volumes and exit the market. For example, the CEO of ArcelorMittal Kryvyi Rih has spoken about this. And this is one enterprise that generates about 8 million tons of freight, which is about 5% of what Ukrzaliznytsia transported this year," the expert gave as an example.
