The National Association of Mining Industry of Ukraine (NADPU) has expressed concern regarding the planned 37% increase in tariffs by “Ukrzaliznytsia” for freight transportation. According to the official statement, if this decision comes into effect, for example, on May 1, it could lead to additional costs for the domestic industry amounting to over 17.5 billion hryvnias by the end of the current year.
This is reported by Business • Media
According to NADPU representatives, over the past three years of war, the cost of railway transportation has more than doubled. Such a tariff increase will create critical pressure on enterprises, especially in the mining and metallurgical and coal sectors. At the same time, the mining and metallurgical complex may incur additional costs of 6.4 billion hryvnias, while coal companies may face an additional 1.6 billion.
Consequences of Tariff Increases for the Economy and Business
NADPU emphasizes that the increase in tariffs will lead to a rise in production costs, negatively affecting the competitiveness of Ukrainian products in global markets. This could result in a decrease in extraction and transportation volumes, as well as cause downtime at enterprises. Furthermore, there is a risk of losing freight traffic, as companies will be forced to seek alternative logistics routes.
The association also points out the potential deterioration of the socio-economic situation in the regions, as thousands of jobs will be at risk.
“We do not deny the necessity of stabilizing ‘Ukrzaliznytsia’, but we believe that such a sharp increase in tariffs is not the only way”
NADPU representatives plan to hold a working meeting with the leadership of “Ukrzaliznytsia” to find a balanced solution that ensures the financial stability of the enterprise without harming the competitiveness of Ukrainian industry and helps avoid mass layoffs and economic losses in the regions.
The organization emphasizes that this issue affects not only the mining sector but the entire economy of the country. Earlier, NADPU head Ksenia Orynchak stated that the 37% increase in “Ukrzaliznytsia” tariffs could destroy the industry, and last year, due to rising tariffs and increased prices for logistics and electricity, many enterprises were forced to halt production.