Ukrainian Railways posts UAH 7.2 bln net loss for 9M, proposes 41.5% freight tariff hike in 2026
Ukrzaliznytsia (Ukrainian Railways), Ukraine’s state railway company, can no longer subsidize loss-making passenger transport through revenues from freight operations, as it has lost 49% of its freight traffic between 2021 and 2025. The company is proposing a 41.5% increase in freight tariffs next year, to be implemented in two stages, and is requesting budgetary support, said Serhiy Leschenko, Deputy Chairman of Ukrzaliznytsia’s Supervisory Board.
"The net loss for nine months is UAH 7.195 billion, while passenger transport losses last year reached UAH 18 billion. In any case, indexation of freight tariffs is unavoidable, but it needs to be done gradually, in two stages, to avoid shocks for industry," Leschenko said from the parliamentary rostrum on Tuesday, according to an Interfax-Ukraine correspondent.
"We need at least to index tariffs in line with producer price growth. This could bring in UAH 22.5 billion if implemented next year from January 1 and July 1 – by 27.5% and 11%, respectively," he said.
He added that the situation with freight transportation is unlikely to improve, as almost the entire coal industry of Donetsk region has been lost this year, with the last operating mine – Bilozerska – now also shut down.
"Iron ore processing plants are halting operations due to the war… This year alone there have been 800 attacks on railway infrastructure, damaging 3,000 facilities… To offset these losses, we need help from Ukrainian taxpayers," Leschenko said.
According to him, discussions are underway regarding UAH 16 billion in budget support for 2026 to cover passenger transport losses, and the company is very grateful for the government’s willingness to support this decision.
Leschenko recalled that this year the government allocated UAH 13 billion to Ukrzaliznytsia to offset passenger transport losses. He also noted that the company expects to raise up to UAH 10 billion from scrap metal sales.
As reported, the draft state budget for 2026 allocates UAH 4.2 billion for the development of urban public transport in Ukrainian cities and UAH 1.2 billion for railway modernization. Additionally, UAH 1.8 billion in funding is earmarked for Ukrzaliznytsia to implement a joint project with the French government for rail supply.
In January–June 2025, Ukrzaliznytsia’s export freight volumes fell by 13.5% to 38.7 million tonnes, while domestic shipments declined by 11.7% to 35.5 million tonnes. Import freight increased by 5.4% to 5.3 million tonnes. Passenger traffic in the first half of 2025 rose by 1.2% to 13.52 million passengers.
According to Ukrzaliznytsia’s projections included in the 2026 draft state budget, losses from passenger transport will amount to UAH 20.8 billion in 2025, UAH 22.3 billion in 2026, UAH 24.7 billion in 2027, and UAH 29.4 billion in 2028. At the same time, freight transport profit is expected to drop sharply to UAH 0.9 billion in 2025, then increase moderately to UAH 9.0 billion in 2026, UAH 12.6 billion in 2027, and UAH 19.3 billion in 2028.
In 2024, the company’s passenger transport losses grew by UAH 2.4 billion, or 15.4%, to UAH 18.1 billion, covered by profits from freight transport, which reached UAH 20.4 billion.
Overall, in 2024 Ukrzaliznytsia increased its revenue by 11.1% to UAH 102.87 billion, but recorded a net loss of UAH 2.71 billion, compared with a net profit of UAH 5.04 billion in 2023.