National rail operator Ukrainian Railways (UZ) could end 2026 with a net loss of up to 18 billion hryvnia (about €355 million). Despite more optimistic forecasts in summer, a sharp fall in freight volumes has led to a deterioration in UZ’s business.
In summer, UZ still expected a net loss of 10 to 12 billion hryvnia (€197 million to €237 million). However, freight volumes have fallen by some 36% since the end of July, Ukrainian Deputy Minister of Infrastructure Volodymyr Shemayev told Forbes Ukraine. As a result, the company lost around 1 billion hryvnia (€20 million) in revenue.
Moreover, UZ has lost 400 locomotives to Russian drone attacks since the start of the year, writes Forbes Ukraine. Earlier, RailFreight.com reported that over 600 locomotives have been destroyed or damaged during the war.
Tariff hike falls short
UZ raised its freight tariffs by 30% on 1 August. This was the first increase since July 2022, when tariffs rose by 70%. Still, the hike could not compensate for the drop in volumes, Shemayev explained.
In June, UZ also proposed a further 15% increase from 1 January 2027. No decision has been taken on this yet. The rail operator first has to submit a formal proposal, but even that increase would not cover the expected loss, the deputy minister added.