The All-Ukrainian Association of Communities (VAC) appealed to Prime Minister Yulia Sviridenko and the head of the Presidential Office Kirill Budanov with an appeal to prevent the increase in tariffs for freight rail transportation, which is planned by Ukrzaliznytsia from August 2026. The association noted that a 45% increase in tariffs could lead to a massive shift of cargo from rail to road transport. This, in turn, will accelerate the deterioration of local roads, most of which are already in poor condition due to years of underfunding, and increase the unemployment rate.

According to the State Agency for Reconstruction, the road industry is currently financed by only UAH 4.6 billion, while the need is UAH 51.3 billion. The VAG warns that the additional burden from heavy transport will fall on local budgets that do not have the resources to repair infrastructure.

The association also noted that the main reason for the financial problems of Ukrzaliznytsia is not freight transportation, which remains profitable, but the unprofitability of the passenger segment. According to VAG estimates, losses from passenger transportation in 2026 may exceed UAH 25 billion.

The appeal emphasizes that an increase in logistics costs will worsen the competitiveness of Ukrainian enterprises and may lead to a reduction in production, job losses, a decrease in tax revenues and foreign exchange earnings..

WAG called on the authorities not to increase freight tariffs in 2026, to develop a long-term mechanism for state compensation for losses from passenger transportation and to formulate railway policy based on the principles of supporting the economy and community development.

The association noted that the social function of passenger transportation should be financed through transparent budget mechanisms according to the PSO model, which is used in most countries of the European Union, and not by increasing the tariff burden on business.