Ukrzaliznytsia's fare hike threatens to result in the loss of 76,000 jobs
A 37% increase in Ukrzaliznytsia’s freight rates could lead to a reduction in Ukraine’s GDP by nearly 100 billion hryvnias, a loss of approximately $2.4 billion in foreign exchange earnings, a decrease in budget revenues by more than 36 billion hryvnias, and the loss of at least 76,000 jobs.
This is stated in a letter from the “Ukrmetallurgprom” business association to Prime Minister Yulia Svyrydenko and Head of the Main Intelligence Directorate of the Ministry of Defense Kirill Budanov.
The association emphasized that the mining and metallurgical complex remains one of the key sectors of Ukraine’s economy, accounting for approximately 5.5% of GDP, $6 billion in foreign exchange earnings, and over 150 billion hryvnias in tax revenues.
According to Ukrmetallurgprom, in 2025, companies in the sector incurred a combined net loss of 28 billion hryvnias. Some production facilities have already been shut down, while others are operating at less than full capacity.
The association also noted that previous increases in freight rates in 2021–2022 were unprecedented: for certain categories of cargo, they rose by up to 210%, while global prices for iron ore and metal products remained virtually unchanged.
Industry representatives believe that the main problem for Ukrzaliznytsia remains the unprofitability of passenger transport, while the freight segment is profitable. According to their estimates, the deficit in the passenger sector will exceed UAH 25 billion in 2026.
According to calculations by the state-owned enterprise “Ukrpromzovnishchexpertiza,” a 37% increase in fares could result in a reduction in GDP of nearly UAH 100 billion, a loss of $2.4 billion in foreign exchange revenue, a decrease in budget revenues by more than UAH 36 billion, and the loss of at least 76,000 jobs.
At the same time, according to business sources, Ukrzaliznytsia is considering raising tariffs by 45%, which could further exacerbate the negative impact on the economy.
In this regard, Ukrmetallurgprom has called on the government to impose a moratorium on freight rate increases until the end of martial law, to compensate for passenger transport losses using state budget funds, and to attract international financing for the restoration of railway infrastructure.
As a reminder, Ukrzaliznytsiais launching the purchase of commuter tickets via an app throughout Ukraine.
Ukrzaliznytsiais deploying over 800 mobile shelters across the country.
