Ukrzaliznytsia proposes to increase freight tariffs from 1 August
This was reported by Ukrzaliznytsia. The draft order from the Ministry of Community and Territorial Development of Ukraine was published for public consultation on 19 June 2026.
Ukrzaliznytsia has initiated a review of freight transport tariffs due to rising costs following the previous indexation in 2022.
The company states that industrial inflation has more than doubled during this period. According to Ukrzaliznytsia, electricity costs have increased 2.4-fold – by 15.4 billion hryvnias.
The draft order provides for a first-stage increase in tariffs of 30 per cent from 1 August 2026 for freight transport within Ukraine.
It is also proposed to standardise tariffs for the carriage of empty wagons in order to bring these operations to break-even.
Will there be a second phase of increases?
Ukrzaliznytsia notes that various indexation options were previously discussed, including a more drastic increase.
At present, the company describes the proposed option as moderate and phased. A decision on the next phase of indexation, to take effect from 1 January 2027, is to be taken separately.
In previous public discussions, a general increase of 45 per cent was mooted; however, the draft order published provides for a 30 per cent increase from 1 August 2026.
Why Ukrzaliznytsia is asking for a review of fares
Ukrzaliznytsia explains the initiative by citing the company’s difficult financial situation.
According to Ukrzaliznytsia, the company’s net loss in 2025 stood at 7.6 billion UAH, and for the first four months of 2026 – 9.3 billion UAH.
The company also notes that in 2026 it will implement a cost-cutting programme worth 10.2 billion hryvnias. This involves the sale of scrap metal, the disposal of non-core assets and operational optimisation.
Furthermore, the government has, for the first time, introduced a state-funded passenger transport scheme worth 16 billion hryvnias to ensure that these costs are not passed on to shippers.
How this will affect shippers
Ukrzaliznytsia states that it has analysed the impact of indexation on various sectors.
According to the company’s calculations, transporting 1 tonne of coal over an average distance of 660 km will cost 143.3 UAH more. For iron ore over an average distance of 754 km, the increase will be 160.4 UAH per tonne. For grain, over an average distance of 676 km, the increase will be 169 UAH per tonne.
Ukrzaliznytsia states that even after indexation, the share of rail logistics in the final price of products will remain lower than in 2022–2023.
What critics of the increase are saying
Business representatives have previously criticised the idea of a sharp increase in tariffs, citing risks to producers, exports and the competitiveness of Ukrainian products.
In particular, the Federation of Transport Employers of Ukraine stated that Ukrzaliznytsia’s problem lies not only in freight tariffs but also in the unprofitability of the passenger segment. The business community has also called for transparency regarding the state monopoly’s expenditure and for systematic regulation of its tariff policy.
Ukrzaliznytsia, for its part, insists that without indexation, freight transport has become unprofitable given current costs and lower volumes due to the war.
Comparison with Europe
Ukrzaliznytsia also compares Ukrainian freight tariffs with those in Europe.
According to the company’s data, between 2023 and 2026, tariffs in Slovakia rose by 16 per cent, in Hungary by 27 per cent, and in Romania by 20 per cent.
In Ukraine, over the same period, when converted to euros per tonne, tariffs fell by 23% due to the devaluation of the hryvnia, according to Ukrzaliznytsia’s estimates.
The company states that freight tariffs in Hungary, Slovakia and Romania, when converted to euros per tonne, remain 2–3 times higher than in Ukraine.
Ukrzaliznytsia continues to operate during the war and reports significant damage to its infrastructure.
According to the company, since the start of the full-scale invasion, there have been over 5,400 strikes on railway infrastructure and rolling stock. The estimated losses from the damage already exceed 100 billion hryvnias.
Ukrzaliznytsia states that the increase in freight tariffs is intended to support the stable operation of the railways, military and humanitarian transport, as well as the smooth functioning of key economic sectors.
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