Ukrainian Railways (UZ) is planning to increase railway tariffs by 30% in August, with a possible further increase for 2027. The initiative is considered necessary “so that the railway could continue to operate against the backdrop of galloping costs”.
The last time UZ reviewed its tariffs was June 2022, when they rose by 70%. Since then, costs have continued to soar. For example, the company said that industrial inflation doubled and the price of electricity rose by 2.4 times. “Freight transportation with frozen tariffs and reduced volumes due to military operations has become unprofitable”, it added. The company will now listen to comments and alternative proposals until 19 July, after which a final decision is expected.
Losses pile up
More specifically, UZ’s net losses in 2025 amounted to 7.6 billion UAH (147.6 million euros). Things got even worse in the first four months of this year, reaching 9.3 billion UAH (180.6 million euros). A tariff increase is thus considered “fair, as it reflects, at least in part, the real increase in the cost of all railway costs, while the prices of shippers’ products have been growing steadily all these years”.
Shippers’ pessimism
Talks about higher tariffs for UZ have been ongoing for a couple of years already. The company’s CEO recently underlined that a 45% increase would be necessary to restore finances. On the other hand, shippers warned that higher costs might lead to bankruptcies and economic collapse.
Still, UZ claims that even with a 30% tariff hike, rail freight prices in Ukraine would still remain lower than most of its EU neighbours. “Freight rates in European countries, in particular in Hungary, Slovakia and Romania, in terms of euro-tonne are two to three times higher than in Ukraine”, the company explained in a Telegram post.
+60% for empty wagons
In addition to the possible 30% increase planned for August, UZ also wants to unify tariffs for the transport of empty wagons. “Currently, archaic norms are in force, according to which the transportation of empty wagons is tariffed depending on what was transported in them before.” These tariffs may increase by an astounding 60%, according to Ukrainian media citing the official government document.