Ukraine's Railways Set for Significant Freight Tariff Increase in 2025

Ukraine's state railways company, Ukrzaliznytsia, plans to raise freight tariffs by 37% starting February 2025. This decision is made to cover rising costs due to fuel, electricity, and equipment repair expenses amidst effects from Russian attacks. Many sectors, including agriculture and metallurgy, oppose the hikes.

Ukraine's state railways, Ukrzaliznytsia, announced a 37% increase in freight tariffs will take effect from February 2025, citing escalating fuel, electricity, and equipment repair costs as primary factors. This decision comes amid challenges stemming from Russian attacks, according to company head Oleksandr Pertsovskiy.

Railways are crucial for Ukraine's economy, transporting half of its goods, including key exports like grain and metallurgical products. However, the proposed tariff increase has met with resistance from farmers and steelmakers, who argue it threatens their competitiveness and financial stability.

The Ukrainian agrarian lobby, UCAB, warned the tariff hike could harm farmers and reduce production and export volumes, while the traders' union, UGA, stated the decision could exacerbate difficulties for farmers already impacted by plummeting global food prices.

(With inputs from agencies.)