Ministry of Infrastructure raises tariffs for freight transportation by 70%

The Ministry of Infrastructure of Ukraine agreed with the proposal of UZ to increase tariffs for cargo transportation by 70%.

The relevant order №441 "On Amendments to the Coefficients Applicable to Tariffs of the Collection of Tariffs for Carriage of Goods by Rail within Ukraine and Related Services" was signed by Minister Oleksandr Kubrakov on June 22, the document was registered with the Ministry of Justice on June 24.

Unlike several previous increases last year, this time the coefficients have been increased equally - by 70% - for all 20 types of cargo.

"From July 1, 2022, the Ministry of Infrastructure will conduct a planned indexation of tariffs for freight," - said in the announcement of the press conference scheduled for June 29, Chairman of the Board of UZ Alexander Kamyshin.

According to the explanatory note to the draft order, which was read by the Interfax-Ukraine agency, UZ plans to receive an additional UAH 11 billion by the end of 2022 due to this tariff increase.

The company noted that in the first five months of this year, due to the war, cargo transportation fell 2.9 times - up to 27.1 million tons, including in domestic traffic 2.7 times - up to 14.5 million tons, for export - 2.5 times, up to 10.8 million tons, imports - 6.4 times, up to 1.6 million tons, while transit collapsed almost tenfold - up to 0.3 million tons.

UZ also noted that its estimated cost of repairing war damage will exceed UAH 100 billion.

As reported with reference to the order of the Ministry of Infrastructure of October 29, 2021, from the beginning of 2022 tariffs for transportation of a group of goods of the 1st tariff class of rail increased by 9%.

This was preceded by a decision to increase tariffs from August 17, 2021 for the transportation of a group of goods of the 1st and 2nd tariff classes by 8%, and from January 2022 - by 20.4% and 6.5%, respectively.

At that time, UZ estimated additional revenues from tariff increases at UAH 2 billion in 2021 and UAH 12.3 billion in 2022.

In 2021, UZ, according to preliminary data, received UAH 457 million in net profit against a loss of UAH 11.9 billion a year earlier.

Source: Interfax-Ukraine

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