23 Nov 2023 16:25

Freight transportation cost hike by 20% from Jan 1 not expected, but indexation likely - Ukrainian Railways

MOSCOW. Nov 23 (Interfax) - Ukrainian Railways does not expect a 20% hike in the freight transportation costs from January 1, but their indexation is likely due to the rise in prices of a number of components of the railroad operations, Ukrainian media reported, citing Valery Tkachev, deputy director of the Ukrainian Railways commercial operations department, as saying at a meeting with exporters on Thursday.

"Under the financial plan, no increase is envisaged. But there is an open question of possible indexation. To apply it or not, our shareholder, the Cabinet of Ministers will make a decision. As of today, we do not have clear information about the hike. Therefore, any information about it is untrue," he said.

Ukrainian Railways asked the government to harmonize the tariff system so that grain traders and grain shippers could pay a little less for freight transportation by rail, Tkachev also said. Efforts to unify tariffs are continuing, he said.

At the same time, the issue of freight transportation cost indexation exists, Tkachev said. "Our fuel prices have soared over the past year. But whether or not to make indexation, it is up to the government and the Restoration Ministry to decide. For now, it is in question. I have no information about the hike," Tkachev said.

As reported, on November 20, the Ukrainian Grain Association expressed concern about the upcoming 20% rise in tariffs for freight rail transportation and the use of freight cars in 2024 and called on the government and Ukrainian Railways to find mutually acceptable solutions with the agricultural sector.