The American Chamber of Commerce calls for a measured review of rail tariffs

The American Chamber of Commerce in Ukraine has called on the government not to approve the draft order from the Ministry of Development regarding an increase in rail freight tariffs in its current form. This is stated in the organisation’s statement dated 13 July.

Instead, the Chamber proposes holding an open discussion involving the business community and relevant industry associations, as well as developing a comprehensive plan for the financial stabilisation of JSC ‘Ukrzaliznytsia’. In particular, this plan should provide for:

• reforming the tariff-setting system;
• resolving the issue of cross-subsidisation of passenger transport;
• improving the company’s operational efficiency;
• ensuring a predictable tariff policy.

As noted by experts from companies that are members of the American Chamber of Commerce, they recognise the need to support the financial stability of ‘Ukrzaliznytsia’ in the context of a full-scale war. At the same time, in their view, the proposed 30 per cent increase in freight tariffs – and a 60 per cent increase for certain categories of empty wagons – poses significant risks to the country’s economy. In this regard, such changes must be economically justified and predictable.

The tariff increases will lead to higher logistics costs, reduced competitiveness of Ukrainian products, a decline in exports and an additional burden on strategic sectors.

Furthermore, representatives of the business community emphasise that the proposed tariff revision does not comply with the current methodology for setting tariffs, as Ukrzaliznytsia’s financial plan for 2026 has not yet been approved.

It should be recalled that the European Business Association (EBA) previously appealed to the Ministry of Development, calling for a review of the proposed 30 per cent increase in rail freight tariffs. Member companies of the EBA’s Logistics Committee are concerned about the proposed initiative and believe that the economic justification requires further analysis.