Ukrzaliznytsia tariff hike will be a blow to industry

Ukrzaliznytsia tariff hike will be a blow to industry
Ukrzaliznytsia tariff hike will be a blow to industry

The tariff increase by "Ukrzaliznytsia" could deal a serious blow to Ukrainian industry. Alexander Vodoviz, head of the project office of "Metinvest", stated that the intention to increase the cost of freight transportation by 37% would lead to further losses and the shutdown of enterprises.

According to him, some of "Metinvest"'s production facilities have already suspended their operations. These include the Ingulets Mining and Processing Plant, where approximately 3,000 people worked, as well as repair units.

 According to a recent study by KSE, the company was among the most affected in Ukraine due to the war. The deterioration of the situation, caused by rising logistics costs, could become critical.

"Tariffs are rising for everything. State monopolies are passing their increased costs on to consumers. However, it is business that finances defence spending and pays soldiers' salaries, and these funds cannot be covered by foreign aid. If the state is ready for the closure of businesses, a decrease in tax revenues, and insufficient funding for the army — keep raising tariffs," Vodoviz noted.

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