Ukrainian Railways denies overpricing in purchase of European rails
MOSCOW. Jan 11 (Interfax) - Ukrainian Railways is buying rails of the European manufacturer Saarstahl Rail at a price of 1,730 euro per tonne in 2023, whereas the prices of other manufacturers are at a level of 1,900 euro per tonne, the press service said on Friday, January 6, after reports that the price at which rails were purchased last year was much lower.
"The cost of a tonne, formed using a formula, is 1,730 euro. The monitoring of prices on the European market showed the prices of other manufacturers at a level of 1,900 tonnes per tonnes, including manufacturers from the Czech Republic and Arcelor Mittal on condition of prepayment," the Ukrainian media reported, citing the company's press release.
According to it, the increased prices of energy resources and materials increased the cost of these products in 2022.
Ukrainian Railways also said the contract for the supply of rails will be financed with a preferential loan provided by the French Economy and Finance Ministry for 35 years with an annual interest rate of 0.0161% with a 14-year grace period before the start of the repayment of the main debt.
On the basis of these conditions, Ukrainian Railways calculated that the cost of a purchased rail will be 930 euro per tonnes after the loan repayment with a 3% inflation level in the Eurozone.
The media outlet Nashi Groshi earlier reported that Ukrainian Railways purchased rails from Metinvest before the crisis. Their cost was 33,780 hryvni per tonne, or almost 1,100 euro per tonne, in 2021, 26,550 hryvni per tonne, or 1,000 euro per tonne, in 2019, and 29,001 hryvni per tonnes, or 938 euro per tonne, in 2018.