UCAB called on UZ to refuse to increase freight transportation tariffs

The Ukrainian Association expressed its disagreement with the intentions of JSC “Ukrzaliznytsia” to increase freight rates.

This was reported by the Ukrainian Club of Agrarian Business (UCAB). 

The UKAB believes that in conditions of war, global economic instability, rapid growth in production costs and loss of part of the export potential, such decisions pose a direct threat to the competitiveness of the Ukrainian economy and the agricultural sector, which remains one of the few sources of foreign exchange earnings and economic stability of the state.

Today, as the association emphasized, agribusiness is working under unprecedented resource and financial pressure: the global crisis in the fertilizer market, the rise in the cost of energy, the rise in the cost of natural gas and logistics have already led to a significant increase in the cost of resources. At the same time, farmers are faced with a rapid increase in prices for plant protection products, an increase in the excise tax on fuel, high credit rates, a deficit of working capital and a constant increase in the costs of production and transportation of products.

“Against this background, another initiative to increase freight rates by more than 45% does not look like a systemic solution for reforming UZ, but as another transfer of inefficient costs of a state-owned company to a business that is already operating at the edge of profitability. Of particular concern is the lack of a comprehensive vision of the company’s exit from the crisis and an attempt to once again close financial problems by simultaneously increasing the tariff burden on the real sector of the economy,” the appeal emphasizes.

The UCAB noted that business should see how UZ plans to increase its own operational efficiency, reduce unproductive costs, reform tariff policy and create competitive conditions for shippers.

“Only after this can we talk about any changes in tariffs. A separate problem remains the lack of fair equalization of tariff classes, the opaque mechanism for forming the cost of the wagon component and organizing wagon rental. In total, this creates additional financial pressure on producers and exporters and significantly reduces the liquidity of enterprises in a critically difficult period for the country,” the appeal says.

The association also added that it is especially dangerous that such decisions are made at a time when the railway itself is already gradually losing its cargo base. Excessive tariff increases, according to representatives of the Ukrainian Railways Association, will only accelerate this process, stimulating a reduction in production volumes, reorientation of cargo to alternative modes of transport or a complete abandonment of certain areas of activity due to loss of economic feasibility.

“As a result, not only farmers or exporters will suffer, but also the state budget, the country’s foreign exchange earnings and the overall economic stability of Ukraine,” the agricultural association emphasized.

The Ukrainian Railways Association called on JSC Ukrzaliznytsia and state authorities to abandon such a sharp increase in tariffs and to proceed to an open dialogue with business on the formation of a predictable, economically justified and fair tariff policy.

As previously reported in USM, in April 2026, metallurgists turned to the government over UZ’s new tariffs for the ports of Odesa.