FRTU called on not to increase freight tariffs of Ukrzaliznytsia: this could increase pressure on the economy

Yesterday, 23:55 | Economy
photo Обозреватель
Text Size:

The Federation of Transport Employers of Ukraine (FRTU) called on the government to abandon plans to increase freight railway tariffs in 2026-2027: such a decision could create additional risks for Ukrainian manufacturers, exports and public finances in a war.

This was stated by the General Director of the Federation of Transport Employers of Ukraine Vladimir Husak, commenting on information about a possible increase in freight tariffs of Ukrzaliznytsia JSC by 30% from August 2026 and by another 15% from January 2027.

“Today, Ukrainian manufacturers are working in war conditions: expensive and scarce electricity, complex logistics, shortage of workers, constant risks for production and exports, expensive financing. And it is at this moment that it is proposed to deal another financial blow to Ukrainian business,” Husak emphasized..

At the same time, he noted that the transport industry also operates in extremely difficult conditions, and railway workers provide critical transportation every day during the war. At the same time, the financial difficulties of Ukrzaliznytsia are not primarily associated with the level of freight tariffs - the company’s freight segment remains profitable and provided about UAH 20 billion in operating profit annually. And with the fact that losses in passenger transportation could grow up to UAH 25 billion in 2026.

“The main problem is the chronic billion-dollar losses from passenger transportation, which have been covered by shippers and industry for years,” Husak emphasized..

The Federation also draws attention to the long-term trend of reduction in the freight base of the railway: if in 2015 the volume of freight traffic was about 350 million tons, then in 2021 - 314 million tons, and in 2026 it is expected to reach 161 million tons.

The expert explained that part of the cargo in previous years switched to road transport due to a consistent increase in tariffs, and warned that a further increase in the cost of transportation could speed up this process and negatively affect both business and the railway itself.

" The alternative should be state support for the railway and the preservation of enterprises until the end of the war,” Husak emphasized.



He also expressed the belief that decisions on tariff policy should take into account not only the needs of an individual company, but also the impact on the country's economy, export potential and the preservation of production in wartime conditions.

Earlier, the Federation of Transport Employers of Ukraine called on the government to introduce a moratorium on increasing freight tariffs until the end of martial law and move to systematic budget financing of socially important passenger transportation according to the European model of Public Service Obligation (PSO).




Add a comment
:D :lol: :-) ;-) 8) :-| :-* :oops: :sad: :cry: :o :-? :-x :eek: :zzz :P :roll: :sigh:
 Enter the correct answer