"The interests of state monopolies, particularly their management, are currently prioritized over those of legitimate businesses that pay taxes and contribute to Ukraine's budget. Nobody understands why "Ukrzaliznytsia" is raising tariffs again, which are already 60% higher than pre-war levels. This tariff pressure has hindered the revival of production at numerous enterprises over the past two years, and Ukrzaliznytsia plans to increase rates by another 40%. The Cabinet of Ministers must approve this decision: I hope they listen and do not endorse it," he stated.
According to Zinchenko, the increase in tariffs will lead to a significant rise in logistics costs within the industry, with additional expenses amounting to 10 billion UAH. Specifically, for the "ArcelorMittal Kryvyi Rih" plant, one of Ukraine's largest steel producers, this will translate to approximately 1.5 billion UAH in additional annual costs.
"This will result in a loss of competitiveness for our products in the global market, benefiting only our competitors from China, Turkey, Russia, Brazil, and Australia. The increase in these tariffs will cause "Ukrzaliznytsia" to lose its freight base, with cargo shifting away from "Ukrzaliznytsia" and some enterprises either closing down or reducing operations to a minimum. Consequently, "Ukrzaliznytsia" will not gain additional revenue but will incur losses. They will raise tariffs and ultimately cause further damage, with no extra income in sight," the expert declared.
Zinchenko emphasized that over the past three months, the management of "Ukrzaliznytsia" has not provided any reasonable arguments for the necessity of raising tariffs.
"In the last 10 years, no increase in "Ukrzaliznytsia" tariffs has improved the situation; it has only worsened. Currently, Ukrzaliznytsia has conditions that warrant a 20% reduction in freight tariffs, as it is highly profitable. This can be achieved without losing profitability and while demonstrating financial success. This will ensure stable business operations! A long-term solution to its existing problems would be demonopolization, as has occurred in all EU countries," he concluded.