Ukrzaliznytsia preparing new 37% tariff increase that threatens stability of Ukrainian industry - Mining Industry Association
The National Association of the Mining Industry of Ukraine expresses serious concern over another planned increase in Ukrzaliznytsia's tariffs for freight transportation by 37%.
According to the statement of the National Association of the Mining Industry of Ukraine, if the decision comes into force (for example, from May 1), this may lead to additional costs of UAH 17.5 billion for the industry by the end of 2025.
In this case, the cost of railway transportation will increase by more than 100% over the last three years of the war. Such a tariff increase will create critical pressure on enterprises, especially in the mining, metallurgical and coal mining complexes: the mining and metallurgical complex may lose UAH 6.4 billion in additional costs, coal mining companies - another UAH 1.6 billion.
Consequences for the economy and business include an increase in the cost of production, which will lead to a decrease in competitiveness in world markets, a reduction in production and transportation volumes, and possible downtime of enterprises. There is also a risk of loss of cargo turnover for Ukrzaliznytsia as companies will be forced to look for alternative logistics routes.
In addition, the socio-economic situation in the regions will deteriorate - thousands of jobs are at risk.
"We do not deny the need to stabilize Ukrzaliznytsia, but we believe that such a sharp increase in tariffs is not the only way. The association initiates a working meeting with the management of Ukrzaliznytsia to jointly find a balanced solution that will ensure the financial stability of Ukrzaliznytsia, will not destroy the competitiveness of Ukrainian industry, and will avoid mass layoffs and economic losses in the regions," it states.
It is emphasized that this issue concerns not only the mining industry, but also the entire economy of Ukraine, therefore, fair and balanced solutions should be found together, the statement summarizes.