As of tomorrow, 1 August 2026, rail freight tariffs in Ukraine will be 30% higher, as Ukrainian Railways (UZ) confirmed the increase after four years without any adjustments. “The ‘frozen’ freight rates have led to an extremely difficult financial situation”, the company explained.
The last time that UZ tariffs were changed was in June 2022, where they increased by 70%. Since then, “electricity costs have increased by 2.4 times, making freight transportation unprofitable with frozen and reduced tariffs”. The company managed to remain stable with what it called radical cost reductions which also include the sale of non-core assets and scrap metal.
UZ announced its intentions to increase rail freight tariffs by 30% in June, despite various shippers saying they might not survive. On the other hand, the CEO of UZ said that, to actually restore finances, the company would need to raise tariffs by 45%. “A separate decision regarding the next phase of the adjustment, effective 1 January 2027, will be made later”, the company added.
‘Fair’ increase
Ukrainian Railways said that the new indexation of tariffs partially reflects the actual increase in railway costs. Moreover, tariffs in Ukraine will still remain lower than most European countries, the company claimed. Because these countries adjust their fees every year, tariffs there are “2-3 times higher than in Ukraine”. In comparison, the 30% rise after four years would equal roughly a 7% yearly increase, “which is significantly lower than the industrial inflation rate”.