The “Ukrcement” Association advocates for a measured increase in rail freight rates, which, on the one hand, will help JSC “Ukrzaliznytsia” (UZ) maintain its capacity to transport cargo, and on the other hand, will not lead to the closure of operating enterprises.
“As business representatives for whom rail transport accounts for more than half of all shipments, we have no interest in a scenario where transport collapses, just as we have no interest in the collapse of any industrial sector. Therefore, we are ready to cooperate to find a realistic solution to today’s complex situation. By agreeing to the tariff increase, we want to see where the additional payments from businesses will go and understand how delivery times to consumers and the turnaround time for empty railcars will be reduced,” said Pavlo Kachur, chairman of the “Ukrcement” Association.
He emphasized that UZ deserves respect and support for its work in transporting cargo for the front lines and national defense, but the situation with the freight transportation of products manufactured in Ukraine—both for the domestic market and for export—is becoming critical and requires joint, and possibly even emergency, measures and actions at the level of the Cabinet of Ministers. “This is not about a single industry or a specific plant, but about Ukraine’s economy as a whole. Therefore, it is the duty of manufacturers and Ukrainian Railways to work together to achieve a positive outcome,” noted the head of the cement manufacturers’ association.
The expert pointed out that, according to Ukrainian Railways, freight transportation remains profitable, businesses pay market rates for transportation, and an additional increase in tariffs is needed to cover losses from passenger transportation.
He highlighted the pressing problems facing the domestic railway: a lack of traction, an exodus of skilled personnel due to low wages, and the (chronic) unprofitability of passenger (especially commuter) transportation. In particular, the situation with traction is critical. According to Ukrzaliznytsia’s estimates, the current average speed of freight car transport is 37 km per day, compared to the standard of 200 km for single-car shipments and 300 km for scheduled services. The average daily number of scheduled locomotives not assigned to formed trains reaches 50.
“The top priority for improving transportation is to secure backup traction. The market expects Ukrzaliznytsia to present a program for modernizing its locomotive fleet as soon as possible. For our part, we see the most realistic and expedient solution to this problem as opening access for the transport of products using our own traction to the nearest marshalling yards. Ukrzaliznytsia’s experience with such transport operations, successfully tested by PJSC “Ivano-Frankivskcement,” has demonstrated its effectiveness and economic benefits for both the manufacturer and Ukrzaliznytsia, and could significantly free up Ukrzaliznytsia’s locomotives for more profitable operations,” Kachur believes.
He emphasized the staffing issue, noting that low wages are causing an exodus of skilled personnel (primarily locomotive engineers, assistant engineers, loaders, and station workers). “As a result of the tariff increase, competitive wages for employees involved in the transportation system—locomotive engineers, assistant engineers, train dispatchers, and station workers—must become a priority,” says the head of “Ukrcement.”
Regarding passenger transportation, he drew attention to the negative trend of increasing volumes of unprofitable passenger service against the backdrop of declining freight volumes. “The financial pressure on operating businesses due to the cross-subsidization mechanism is exceeding reasonable limits,” Kachur stated. In his view, before raising freight rates, Ukrainian Railways should propose a model for optimizing passenger transportation.
The business community expects Ukrainian Railways to take systematic and responsible steps—such as developing programs to modernize the locomotive and railcar fleets and establishing a model for commuter transportation. As soon as possible, the procedure for admitting private traction must finally be adopted (as provided for in regulatory documents), indicators for freight delivery and the circulation of empty railcars must be approved, and the issue of decommissioning railcars must be revised (based on technical condition rather than a calendar schedule).
“We need extraordinary measures, at least for the duration of the war, which will include a measured increase in freight rates, full transparency toward businesses and the public regarding the allocation of funds received from the rate increases—in particular, raising the salaries of locomotive engineers, assistant engineers, freight handlers, and station employees to market levels,” Kachur noted.
In his opinion, given the scale of the problems, the consideration and adoption of anti-crisis measures should take place at the level of the Cabinet of Ministers.
As previously reported, on Monday, the Ministry of Community and Territorial Development of Ukraine published a draft order providing for a 30% indexation of rail freight tariffs effective August 1, 2026, and the standardization of tariffs for the transportation of empty railcars. Ukrzaliznytsia plans to make a separate decision regarding the next stage of freight rate indexation, which could take effect on January 1, 2027.
According to the Ministry of Development, in 2025, freight volumes decreased by 12.5% compared to the previous year, and Ukrzaliznytsia’s net loss amounted to 7.6 billion UAH. In the first four months of 2026, the loss reached 9.3 billion UAH.
CEMENT, locomotive, TARIFF, UKRCEMENT, UKRZALIZNYTSIA, качур
The Ministry of Community and Territorial Development of Ukraine has published a draft order that provides for a 30% increase in rail freight rates effective August 1, 2026, and the standardization of rates for the transportation of empty railcars.
According to the explanatory note accompanying the document, the need to revise the rates stems from the deteriorating financial condition of JSC “Ukrzaliznytsia,” whose revenues are insufficient to cover current expenses. The ministry noted that the last tariff revision took place nearly four years ago, while between July 2022 and April 2026, the industrial producer price index rose by 252.1%.
According to the Ministry of Development, in 2025, freight volumes decreased by 12.5% compared to the previous year, and Ukrzaliznytsia’s net loss amounted to 7.6 billion UAH. In the first four months of 2026, the loss reached 9.3 billion UAH.
The ministry noted that without tariff indexation, the company’s projected net loss for 2026 will exceed 13 billion hryvnias, and the funding shortfall will reach over 26 billion hryvnias.
The draft order also provides for the completion of the unification of tariffs for the transportation of empty railcars. For railcars used for unloading cargo in tariff classes 1 and 2, tariffs will increase by approximately 60%, while for railcars used for cargo in tariff class 3, they will remain unchanged.
The Ministry of Development expects that the proposed changes will allow Ukrzaliznytsia to partially cover its funding shortfall in 2026 and secure additional financial resources amounting to approximately 8.6 billion UAH.
Ukraine’s major industrial associations and groups oppose Ukrzaliznytsia’s significant and unjustified increase in freight rates, which would deal yet another blow to Ukraine’s economy.
Business representatives expressed this position at a press conference titled “A Tariff Blow to the Ukrainian Economy: Leading Industries Oppose Ukrzaliznytsia’s Unfair Increase in Freight Rates” at the Interfax-Ukraine news agency on Tuesday.
Oleksandr Kalenkov, president of the “Ukrmetallurgprom” Association, noted that while the draft order on raising tariffs has not yet been made public, the issue is being actively discussed. He emphasized that “Ukrzaliznytsia” is a state monopoly and that corruption is present in its operations. The company must operate transparently, and its activities should be overseen by an independent body—the National Commission for State Regulation in the Transport Sector—the creation of which has been under discussion in Ukraine for 17 years.
“We hope that the decision to raise tariffs will be made objectively. Moreover, freight transportation has always been profitable. Specifically, Ukrzaliznytsia’s operating profit in 2024 amounted to 20 billion hryvnias; profitability remained steady in 2025, and we also expect Ukrzaliznytsia to operate profitably this year. However, the volume of freight is decreasing: from 315 million metric tons in 2021 to 160 million metric tons in 2025,” said Kalenkov.
He added that the business community is trying to engage in a constructive dialogue with the company. In particular, there is the issue of subsidizing passenger transportation, but passenger transportation cannot be subsidized at the expense of private businesses; it must be funded through the budget. However, the business community can invest its own funds to provide support.
“Ukrzaliznytsia has opportunities to improve efficiency through its operational activities. Furthermore, it has the ability to secure external financing, whereas the private sector currently lacks such opportunities. So let’s resolve these issues together, rather than making decisions behind closed doors,” urged the head of Ukrmetallurgprom.
Kalenkov added that following the press conference, a joint appeal to the government would be drafted.
“We are prepared to accept a fare increase of up to 10%. And Ukrzaliznytsia itself must improve its efficiency. We need a normal, open discussion about the transportation situation,” he concluded.
Pavlo Kachur, head of the Association of Cement Producers of Ukraine (Ukrcement), noted that the transportation situation is becoming critical, and this threatens not only a specific industry but the Ukrainian economy as a whole.
“We support raising tariffs, but we advocate for an objective increase. Balanced rates must be adopted. No one has any interest in the collapse of any industry!” Kachur emphasized.
The head of “Ukrcement” proposed a set of solutions, including allowing private rail operators to participate in freight transportation, since, according to his data, up to 50 trains are unable to find locomotives for transport. Kachur also highlighted the need to raise salaries for train drivers and “Ukrzaliznytsia” employees, as well as the need to address the issue of passenger transportation, particularly commuter services.
He also spoke in favor of adopting anti-crisis measures and the need for “Ukrzaliznytsia” to publicly disclose its plans regarding where the funds generated by the tariff increases will be allocated.
“We support Ukrzaliznytsia presenting a program to modernize its rolling stock. We support the adoption of performance indicators for freight delivery so that the railway can report on this,” Kachur explained.
Serhiy Kudryavtsev, Executive Director of the Ukrainian Association of Ferroalloy Producers (UkrFA), supported the proposal regarding fares and resolving the issue of cross-subsidization. At the same time, for enterprises in the ferroalloy industry located in areas of active hostilities, the cost of freight delivery is a critical issue.
“The cost of transporting manganese to Nikopol has increased fivefold. And this is a matter of survival for our companies,” said Kudryavtsev.
Vladimir Gusak, CEO of the Federation of Transport Employers of Ukraine, expressed surprise at Ukrzaliznytsia’s plans to raise tariffs.
“This is yet another attempt by Ukrzaliznytsia to raise freight tariffs: by 30% starting in August 2026 and by another 15% starting in January 2027. That is, by nearly 50%. This shows a complete lack of understanding of the realities,” Gusak said, adding that the main problem is the chronic losses in passenger transportation. At the same time, the volume of freight transportation is declining: now, with every fare increase, companies are forced to either reduce shipments or switch to other modes of transport just to stay afloat.
“In the current situation, we believe a moratorium on railway fare increases should be implemented until the war ends,” Gusak emphasized.
Konstantin Saliy, president of the All-Ukrainian Union of Building Materials Manufacturers, noted that in developed countries, fare increases are approved only after consultations, and this issue always receives close attention.
“A 2–3% price increase in the EU causes significant public discontent. Here, however, it’s 30% right off the bat. And this will trigger a chain reaction of price increases—we’ll feel it first, and then consumers will,” Saliy predicted, adding that “Ukrzaliznytsia” could secure funding through land taxes, the development of retail trade at train stations, and other areas, rather than by raising fares. The company should streamline its administrative staff and optimize its expenses. And shifting its problems onto Ukrainians and Ukrainian businesses is the wrong approach, Saliy concluded.
Oksana Nechay, a logistics specialist for rail transport at the Kovalska Industrial and Construction Group, noted that every increase in production costs is practically catastrophic for their company.
“It will lead to a loss of customers, and we operate in the domestic market. And this will result in a drop in tax revenues. The next increase could also take a toll on part of the industry. Both we and Ukrzaliznytsia stand to lose. We are not opposed to an increase, but it must be justified, because we are interdependent,” Nechay said.
Ksenia Orynchak, Executive Director of the National Association of the Mining Industry of Ukraine (NADPU), reported on a “casual meeting” of mining industry representatives last week, as well as an appeal to the Prime Minister, the Ministry of Development, and the State Regulatory Service to prevent an increase in railway tariffs.
“We outlined the negative consequences. Meanwhile, the EU is currently focusing on environmental issues. But Ukraine is moving in the opposite direction, shifting from rail to road transport due to Ukrzaliznytsia’s stance,” Orynchak noted, proposing that a joint appeal following the press conference highlight the need to pursue an environmentally friendly approach in line with the SVA.
Source: https://interfax.com.ua/news/press-conference/1177028.html
BUSINESS, freight rates, INDUSTRY, KUDRYAVTSEV, Nechay, Saliy, TRANSPORTATION, UKRZALIZNYTSIA, КАЛЕНКОВ, Оринчак
JSC Ukrzaliznytsia carried 472,900 passengers during the first week of June (June 1–7).
As noted in the company’s Telegram post on Wednesday, the largest number of passengers (over 13,000) traveled on Train No. 104 Lviv-Lozova.
“We are already receiving 340,000 ticket requests daily and transporting 80,000 people,” Ukrzaliznytsia reported.
According to data for the first week of June, the average number of passengers per car was 393. The number of passengers in children’s groups was 16,400, and the number of military personnel via the special reserve was 2,400.
UZ added that it plans to transport a total of 7 million passengers over the three summer months.
In early June, Ukrzaliznytsia told the Interfax-Ukraine news agency that this year’s summer passenger transport season would be more challenging than last year’s due to rising demand and a reduction in the number of cars.
PASSENGER TRANSPORT, RAILWAY, SUMMER, TICKETS, UKRZALIZNYTSIA
JSC “Ukrzaliznytsia” increased its net loss by 17.3% in January-March 2026 compared to the same period in 2025—to 7.9 billion UAH—as a result of constant enemy shelling and rising energy costs, according to a company statement on Facebook on Monday.
“The first quarter of 2026 was a difficult test for Ukrzaliznytsia. The enemy carried out 541 strikes on railway infrastructure and rolling stock—that is half the number of all attacks in 2025,” Ukrzaliznytsia reported.
The company specified that 1,700 railway facilities were damaged as a result of enemy attacks, and 28 railway workers were injured while performing their duties.
According to Ukrzaliznytsia’s consolidated interim financial report, net revenue increased by 2.2% to 21.8 billion UAH, while gross losses rose by 35.9% to 7.2 billion UAH.
The operating loss for the first quarter of 2026 also rose by 16.5% to 6.6 billion UAH.
In addition, due to abnormal cold weather, freight volumes for January–March 2026 decreased by 6.4% compared to last year—to 34.8 million tons of cargo, the report states.
It is noted that long-distance passenger traffic decreased by 10% compared to the same period in 2025, down to 5.8 million passengers. The company attributed this to enemy attacks on passenger trains and railway infrastructure.
“Because of this, railway workers were forced to temporarily reduce or change train routes. The situation was further complicated by rising fuel prices amid the conflict in the Middle East and general market instability,” the statement said.
It is noted that in March of this year, the purchase price of diesel fuel rose by nearly 50%, and the increase in electricity prices resulted in additional costs of 2.58 billion hryvnias.
“Ukrzaliznytsia is forced to optimize development and restoration costs as much as possible to ensure uninterrupted service under difficult conditions, although it requires additional resources for repairs,” the company added.
At the same time, Ukrzaliznytsia stated that it is exceeding its operational efficiency improvement program by more than 10.2 billion UAH, specifically by leasing space through Prozorro, transferring non-core assets, and other measures.
The number of users of the “3,000 km Across Ukraine” program who, between January and May 2026, were verified via “Diya.Sign” and activated their participation in the Ukrzaliznytsia JSC app exceeded 852,000, the company reported in response to a request from the Interfax-Ukraine agency.
According to the company’s data, participants in the program made 338,000 trips, with an average distance of 433 km.
The highest number of travel documents per kilometer from May 1–28 were issued for the following routes: Kyiv–Vinnytsia–Kyiv – nearly 17,000, Kyiv–Kharkiv–Kyiv – over 10,600, Kyiv-Sumy-Kyiv and Lviv-Kyiv-Lviv – 10,500 each, Kyiv-Mykolaiv-Kyiv – 10,000, and Konotop-Kyiv-Konotop – 9,400.
As for regional routes, the largest number of tickets under the program were purchased for the Lviv-Rivne-Lviv route – 8,400, Khmelnytskyi-Kyiv-Khmelnytskyi – 8,300, Ternopil-Lviv-Ternopil – 6,900, and Khmelnytskyi-Lviv-Khmelnytskyi – 6,100.
Ukrzaliznytsia noted that in May, the program covered more than 50 pairs of long-distance passenger trains and 15 pairs of regional trains.
“In June and July of this year, taking into account the growing demand for rail passenger transportation, the list of long-distance trains has been reduced, while offers for regional service—available for booking by the kilometer—have been retained,” the company explained.
In the first months of summer, seats are expected to be available for the continued implementation of the “3,000 km” program on long-distance trains to and from Kharkiv, Sumy, Zaporizhzhia, Mykolaiv, Chernihiv, Lozova, and Zhmerynka.
For regional service, tickets under the program will be available, in particular, on the Lviv-Rivne-Lviv, Kharkiv-Izyum-Kharkiv, Khmelnytskyi-Lviv-Khmelnytskyi, Zaporizhzhia-Dnipro-Zaporizhzhia, Hrebinka–Kyiv-Volynskyi–Hrebinka, Slavutych/ Chernihiv – Kyiv-Volynskyi, Motovylivka-Slavutych – Kyiv-Volynskyi, Konotop-Kyiv-Nizhyn, Shostka-Fastiv-Shostka, Nizhyn – Kyiv-Volynskyi – Nizhyn, as well as Lviv-Chop-Lviv, Lviv-Uzhhorod-Lviv, and Kyiv-Khmelnytskyi-Kyiv.
As reported, according to estimates by Ukrzaliznytsia, in the worst-case scenario, potential revenue losses from the implementation of the “3000” program without changing current fares could amount to approximately 400 million UAH.
