“Ukrzaliznytsia” Is Raising Fares Starting August 1: Who Will Pay More
30 July 16:45
Changes to rail freight rates are taking effect in Ukraine: this is provided for by an order from the Ministry of Recovery, Infrastructure, and Transport of Ukraine, and the decision is expected to be published on July 31. This was reported by JSC “Ukrzaliznytsia,” according to "Komersant Ukrainian".
“For the first time in over four years, rail freight tariffs are being adjusted—a critical step for Ukrzaliznytsia to continue operating,” the statement reads.
As noted, this was preceded by the completion of all approval procedures required by law, after which the order was registered by the Ministry of Justice of Ukraine.
The order provides for a 30% indexation of rail freight tariffs and the standardization of tariffs for the transport of empty railcars. Previously, these rates depended on the type of cargo previously transported in the cars, even though this has no bearing on the cost of transportation, Ukrzaliznytsia explained.
“This is the first revision of freight rates since 2022. Throughout this time, Ukrzaliznytsia has continued to operate under constant Russian shelling. Railway infrastructure is damaged almost daily, and railway workers are killed or injured,” the statement reads.
According to the statement, more than 460 locomotives have been damaged, and large-scale repair and restoration work has been launched, which requires regular funding. Despite a critical shortage of resources, train service continues uninterrupted, and all shipments vital to the country’s economy and defense are being delivered.
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Ukrzaliznytsia notes that since the last fare adjustment, industrial inflation has more than doubled. Additional electricity costs alone have increased by more than 15 billion hryvnias for the railway compared to 2023, and fuel, materials, repairs, equipment, and other components of transportation costs have become significantly more expensive.
“Despite the rapid rise in costs, Ukrzaliznytsia refrained from revising fares for as long as possible, supporting Ukrainian businesses during an extremely difficult period for the country,” the statement reads.
At the same time, over the past 2.5 years, the company has been unable to financially afford to index railway workers’ salaries, which today lag significantly behind the national average and have fallen to one of the lowest levels among industrial sectors.
According to the company’s estimates, postponing indexation in recent years has provided shippers with a positive economic effect of over 100 billion hryvnias. Even this year, the indexation scheduled for January 1 was postponed to the second half of the year.
To ensure the company’s stable operation, Ukrzaliznytsia proposed raising tariffs by 45%. After numerous consultations with the largest shippers, industry associations, and other market participants, a compromise was reached: to implement the rate adjustment in two stages: by 30% starting August 1, 2026, and by an additional 15% starting January 1, 2027.
Ukrzaliznytsia noted that further postponement of the rate adjustment was no longer possible.
“Due to tariffs that have remained unchanged since 2022, the freight segment is already operating at a significant operating loss. Ukrzaliznytsia’s calculations have been confirmed by the findings of the State Audit Service of Ukraine and international auditors,” the statement reads.
In addition, the company noted that to get through the coming winter—which, according to forecasts, could be one of the harshest in the country’s history—Ukrzaliznytsia needs support from international financial organizations, which are also analyzing the company’s financial condition and emphasizing the need for tariff indexation.
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