A 45% increase in Ukrzaliznytsia’s fares could hurt Ukraine’s economy and exports, according to an expert
Ukrzaliznytsia’s initiative to raise freight rates by 45% effective August 1, 2026, could lead to a decline in production, the loss of billions of hryvnias in revenue, and a weakening of the hryvnia.
This was stated by Volodymyr Husak, CEO of the Federation of Transport Employers of Ukraine.
According to the expert, businesses in Ukraine are already operating under extremely difficult conditions due to the war, as well as energy and logistics issues.
“When I received information about Ukrzaliznytsia’s plans to raise freight rates by 45% effective August 1, 2026—to be honest, I was surprised,” Gusak noted.
He emphasized that Ukrainian companies are currently forced to operate amid electricity shortages, labor shortages, complex logistics, and constant risks to exports and production.
“And it is precisely at this moment that businesses are being offered yet another massive financial burden,” he stressed.
At the same time, the expert noted that Ukrzaliznytsia’s freight transportation remains profitable. According to him, in 2023 and 2024, this segment generated approximately 20 billion UAH in operating profit for the company each year.
At the same time, the main problem lies in the unprofitability of the passenger sector. It is expected that in 2026, losses in the passenger segment could reach 26 billion hryvnias.
“These losses have been covered for years by the industrial sector and shippers. And today, we need to stabilize UZ’s financial condition without dealing a blow to the national economy, because a 45% increase in tariffs is not just a number,” Gusak emphasized.
According to him, a sharp increase in tariffs could result in reduced production, loss of competitiveness, and even the risk of a complete shutdown for businesses.
In addition, this could lead to:
- a decline in exports;
- the loss of tens of billions of hryvnias in tax revenue;
- a reduction in foreign exchange earnings;
- devaluation of the hryvnia.
The expert also noted that rail freight volumes in Ukraine have already fallen by nearly 50% compared to the pre-war period.
“I am convinced that the financial stability of Ukrzaliznytsia is important. But it must not be achieved at the expense of the economy, which is effectively keeping the country afloat today,” Gusak emphasized.
The Federation of Transport Employers of Ukraine reported that it has already approached the Cabinet of Ministers and the relevant ministry with proposals for alternative solutions to stabilize Ukrzaliznytsia’s financial condition without placing an additional burden on industry.
“Today, Ukraine needs solutions that support production and exports, rather than creating new risks for the economy during the war,” the expert concluded.
This year’s summer passenger transport season in Ukraine will be significantly more challenging than the previous one due to a sharp increase in demand and a substantial reduction in the number of available railcars.
Ukrzaliznytsia plans to receive its first Alstom UA8AC electric locomotive in the first quarter of 2027, and a total of 55 such locomotives are expected to be delivered by the end of 2029.
