From August 1, Ukrzaliznytsia’s freight transportation tariffs will increase by 30%. The company attributes the decision to financial losses, rising costs and declining freight volumes due to the war. At the same time, businesses fear that the additional costs could be passed on to consumers through higher prices for goods, fuel and logistics.
This will be the first tariff increase in four years. Tariffs were last revised in 2022, when rates rose by 70%. Along with the new indexation, a single tariff for the movement of empty railcars will be introduced, which for some categories will result in an increase of approximately 60%.
The company says the tariff revision is necessary due to a sharp rise in costs. Since the previous indexation, electricity costs have increased 2.4-fold, while overall operating expenses have risen significantly.
Because of the war, the railway has lost a substantial part of its freight base: transit traffic from Russia and Belarus has disappeared, parts of Ukraine’s industrial regions have been lost, and freight volumes have nearly halved.
In 2025, Ukrzaliznytsia transported 161.3 million tonnes of freight, compared with 315 million tonnes in 2021. According to the company, its freight business, which previously financed a significant share of the railway operator’s activities, has become loss-making.
It is worth noting that the government supports the tariff increase.
Ukrzaliznytsia describes the current decision as only a partial indexation. A further 15% tariff increase could be considered from January 1, 2027.
Critics argue that tariff increases alone will not solve the problem. In their view, the company needs reforms, a separation of infrastructure management from transportation operations, and greater competition in the railway market.
The tariff increase will provide Ukrzaliznytsia with additional funds and strengthen its position in negotiations with creditors, but it will not resolve all of the company’s problems, from declining freight volumes to high fixed costs.
