JSC “Ukrzaliznytsia” (UZ) transported over 1 million passengers between June 8 and 21, with the Kyiv-Lviv route (in both directions) proving to be the most popular among Ukrainians, where demand for tickets was three times higher than supply.
“To give more people the opportunity to travel, we scheduled additional trains,” UZ reported on Telegram on Wednesday.
According to the company’s statistics, the shortage on the Kyiv–Odesa route is 4.5 times the supply. Meanwhile, on the Kyiv–Kharkiv, Kyiv–Dnipro, and Kyiv–Vinnytsia routes, demand is twice the supply.
It is noted that the most popular train that departed last week was No. 705/706 Kyiv–Przemyśl, which carried 26,800 passengers.
In addition, from June 8 to 21, the average number of passengers per car was 692.
The number of passengers in children’s groups totaled 43,500, while 7,700 military personnel traveled via the special reserve.
“We understand the scale of the seat shortage, so we are trying to add trains to popular weekend getaway destinations whenever possible,” Ukrzaliznytsia emphasized.
As previously reported, Ukrzaliznytsia transported 472,900 passengers during the first week of June (June 1–7). At that time, it was noted that Ukrzaliznytsia 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 travel season would be more challenging than last year’s due to rising demand and a reduction in the number of railcars.
More than EUR20 million is expected to be raised for JSC “Ukrzaliznytsia” during the Ukraine Recovery Conference (URC 2026) as part of the business component, which will involve the signing of certain documents, Deputy Prime Minister for Recovery and Minister of Community and Territorial Development Oleksiy Kuleba said in an interview with the “Interfax-Ukraine” news agency.
According to him, the ministry, as part of its resilience efforts, will present situation centers that have been deployed throughout the country. These are centers where dispatchers coordinate air raid alerts or any other threats online 24/7, making decisions regarding the suspension of trains, the evacuation of people, or changes to freight routes.
“This is very serious work that helps us minimize damage and save the lives of passengers and employees, despite constant attacks,” Kuleba emphasized.
The Deputy Prime Minister for Recovery also noted that Ukrzaliznytsia and the port sector are bearing the brunt of the impact amid constant enemy shelling.
“The Russians are doing this entirely deliberately, knowing that in this way they can destroy our export potential so that we cannot ship out what we produce,” Kuleba stressed.
Earlier reports indicated that since the beginning of this year alone, the enemy has launched more than 1,500 attack drones at Ukrainian ports.
In addition, since the start of the full-scale invasion, 966 port infrastructure facilities and more than 200 civilian vessels have been damaged or destroyed.
Furthermore, 257 civilians have been injured or killed as a result of attacks on Ukrainian ports.
“Ukrzaliznytsia,” for its part, noted that during the first quarter of 2026, the enemy carried out 541 strikes on railway infrastructure and rolling stock.
The Ukraine Recovery Conference (URC 2026) will take place on June 25–26 in Gdańsk, Poland. The Ukrainian delegation will be led by Ukrainian Prime Minister Yulia Svyrydenko.
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
