Zaporizhstal urges not to increase freight tariffs of Ukrainian Railways

Amid discussions of a possible 40% increase in Ukrainian Railways’ freight tariffs, the labor collective of PJSC Zaporizhstal issued an official statement calling this initiative unacceptable and destructive in the context of martial law. The company emphasizes that any increase in logistics costs will jeopardize exports, jobs, and the stability of the Ukrainian metallurgical industry.

Zaporizhstal is one of the largest metallurgical plants in the country, accounting for over 11% of pig iron and steel production and almost 30% of flat rolled products in Ukraine. In 2024, the company produced 3.1 million tons of pig iron, 2.9 million tons of steel, and 2.4 million tons of rolled products, exporting its products to more than 40 countries. Over the year, the plant paid UAH 1.8 billion in taxes, remaining a key employer in the Zaporizhzhia region.

Despite the hostilities, the company is operating at 75% of its capacity, maintaining foreign currency inflows and implementing investment programs. In particular, in 2025, Zaporizhstal invested UAH 75 million in the overhaul of its own thermal power plant equipment, and the total capital investment budget exceeds UAH 1 billion.

However, the increase in tariffs may negate these efforts. The rise in transportation costs will increase the cost of metal products, which are already suffering from high energy and raw material prices. The rise in the cost of raw material logistics will be particularly critical: due to the loss of supplies from Pokrovsk, the plant is forced to import coal, and the transport component already accounts for more than 10% of its cost.

The appeal emphasizes that Ukrainian Railways should remain a partner of industry, not a factor in its weakening. Companies that generate foreign exchange earnings, provide jobs, and fill budgets should not suffer from short-sighted tariff policies.

The Zaporizhstal workforce calls on the government and the Ministry of Infrastructure to prevent an increase in freight tariffs in 2025-2026 in order to preserve production capacity, support exports, and strengthen the financial stability of the state.

Earlier, Ukrmetprom noted that the increase in UZ tariffs would be a blow to industry and the economy. According to media reports, Ukrainian Railways plans another increase in freight tariffs – by 27% this year and another 11% from 2026.