Inflation, production cuts and enterprise shutdowns – Media described the consequences of the increase in tariffs by 'Ukrzaliznytsia'.

Ukrzaliznytsia plans to raise tariffs for cargo transportation

According to reports, 'Ukrzaliznytsia' plans to raise tariffs for cargo transportation by 37%. However, the business is categorically opposed to this step, claiming that it may exacerbate the economic crisis. Previously, in 2022, tariffs already increased by 70%, but this was explained by a reduction in transportation due to the war and the social-defense functions of the company.

«Given the increase in tariffs in the summer of 2022 by 70%, no inflation indices or economic indicators during the war can justify the increase in tariffs in 2025», – noted in a comment by GMK Center in the association «Ukrtsement».

The increase in tariffs could lead to a disproportionate rise in logistics costs, an increase in the cost of production, and a loss of competitiveness. The indexing of Ukrzaliznytsia's tariffs will result in an automatic increase in transportation prices, which will negatively impact the country's economy.

The planned increase in tariffs may also lead to a decrease in production and exports, as well as a general deterioration in the economic situation in sectors most dependent on freight transportation.

Therefore, many experts are calling for a review of tariff policy and the implementation of a transparent mechanism for tariff formation that would take into account the interests of all market participants. Careless tariff increases may lead to serious problems in many sectors of the country's economy.