The Ukrainian Agri Council (UAC), together with the relevant associations that are members of the Ukrainian Agri Forum (UAC), have appealed to Prime Minister Yulia Svyrydenko with a demand to immediately stop the planned increase in rail freight tariffs, which Ukrzaliznytsia plans to introduce from January 1, 2026 — an indexation of 27%, and after six months — another 11%.

Ukrainian agricultural producers believe that this decision is unfair, will exacerbate the logistics crisis, reduce the competitiveness of Ukrainian exports, deal a blow to the country's economy, and effectively continue the practice of the state-owned company being forced to subsidize the businesses of certain oligarchic groups at the expense of taxpayers and Ukrainian businesses. This, in turn, deepens the crisis of Ukrzaliznytsia itself.

"It is precisely the previous unbalanced increase in tariffs in 2022 that is one of the reasons for the current crisis. At that time, the volume of road transport increased to 50% of the level of rail transport, and even after the ports were unblocked, the share of road transport remained at 34-39%, which is 10-15% more than before the tariff increase," the appeal said.

The associations note that the passenger transport deficit exceeds UAH18 billion annually, and the total projected loss of Ukrainian Railways in 2026 could reach UAH22.5 billion. At the same time, only UAH0.6 billion is accounted for by the freight segment.

In most developed countries, the financing of passenger transportation is the direct responsibility of the state:

“In the US, Amtrak passenger transportation is financed from the federal budget. The EU uses the PSO model, whereby the state compensates for passenger transportation losses. Ukraine must act in accordance with European rules,” the agricultural associations emphasize.

The document notes that Ukrzaliznytsia continues to apply a non-market approach to tariff setting: rates depend not on cost, but on the type of cargo.

"Among all post-Soviet countries, Ukraine has the largest gap between tariffs for different classes of cargo. Some cargo is transported below cost, and these losses are covered by other sectors, in particular agriculture," the document states.

Farmers emphasize that this practice contradicts market principles and Ukraine's obligations within the framework of European integration.

In their appeal, agricultural associations call on the Prime Minister to support the following decisions:

  • Suspend the planned increase in UZ tariffs in 2026 (27% + 11%) and, at the same time, introduce a transparent tariff-setting mechanism that will make it impossible to subsidize some cargoes at the expense of others.
  • Introduce the European PSO model so that the state compensates for passenger transport losses, as is the practice in the US and EU.
  • Approve a roadmap for Ukrzaliznytsia tariff reform with a regulatory package, KPI, an implementation calendar, and the creation of an interdepartmental working group under the Cabinet of Ministers of Ukraine with the participation of all cargo owner groups.
  • Introduce market-based pricing for the use of Ukrzaliznytsia railcars and complete the development of relevant regulatory documents.

Agricultural associations warn that in conditions of war and high logistical volatility, any unjustified tariff decisions could have serious consequences for exports.

Thursday, 20 November 2025

 

SaveUA_eng

Partners