“They reminded that in 9 months of last year, UZ earned a profit of 1.6 billion hryvnias, and for the same period in 2023 – 8.2 billion hryvnias.”, — write: www.unian.ua
They reminded that in 9 months of last year, UZ earned a profit of 1.6 billion hryvnias, and for the same period in 2023 – 8.2 billion hryvnias.
Photo by UNIANUkrzaliznytsia, instead of looking for internal reserves to optimize costs, chooses the easiest way – transferring financial problems to business, and increases tariffs for freight transportation. But UZ has every opportunity to maintain the current level of tariffs for cargo transportation due to cost optimization and restoration of the cargo base, and at the same time remain profitable. On the other hand, the business is in an extremely critical state, so the consequence of the tariff increase will be the closing of enterprises and the reduction of production volumes. This is stated in an open letter to Prime Minister Denys Shmygal, signed by the most powerful metallurgical enterprises of Ukraine – ArcelorMittal (AMKR), Inguletskyi, Severniy, Poltava, Yeristivskyi and Central GZK, Sukha Balka PJSC and Zaporizhstal.“According to available information, on November 28, 2024, a meeting of the Minister of Community and Territorial Development, Oleksiy Kuleba, was held with the management of the UZ, where it was decided to prepare a draft order to increase the freight tariff by 37%, which is equivalent to an increase in the tariff burden on business by +26 billion hryvnias in In the current conditions, this step will deal a strong blow to the national economy and defense capability unjustified and catastrophic for the industrial enterprises of Ukraine, which are already on the verge of survival due to the energy crisis, personnel difficulties, high production costs and the consequences of military operations,” the letter said.
The metallurgists reminded that in 9 months of last year UZ earned a profit of 1.6 billion hryvnias, and for the same period in 2023 – 8.2 billion hryvnias. This indicates that the company’s expenses are growing faster than income against the background of favorable external circumstances (restoration of shipping from the ports of Ukraine), which is an alarming signal and requires an urgent revision of the spending policy.
“The consequences for the economy in the event of an increase in railway tariffs will be very negative: further reduction of production and shutdown of enterprises, mass layoffs of workers and growth of social tension in the regions. It will also lead to a reduction in foreign exchange earnings, make it difficult to ensure Ukraine’s defense capability and reduce deductions to the budgets of all levels. including to the budgets of the frontline regions,” the letter emphasizes.
At the same time, the consequences will be negative for Ukrzaliznytsia, because the next increase in tariffs will lead to a reduction in production in the industries that form the basis of the cargo and revenue base of the Ukrainian Railways (MMK, agricultural producers, construction and manufacturers of building materials).
“If the exporters of metallurgical and agricultural products lose their positions on export markets or reorient logistics to motor vehicles, UZ will irrevocably lose tens of billions of hryvnias, for which it will not find any other source of financing, except the State Budget (which will also lose income due to production cuts),” they noted. metallurgists
The representatives of the enterprises emphasized that the increase in railway tariffs for freight transportation is unacceptable in the current conditions, and called on the prime minister to maintain the tariff, as well as to review the planning documents of the government and prevent the approval of the financial plan of the UZ for 2025, which will contain excessive costs and tariff increases for freight transportation for industry. Also, according to the opinion of metallurgists, it is necessary to introduce a moratorium on the growth of freight railway tariffs until the end of 2025 and to optimize the costs of UZ.
“We hope that the government of Ukraine will reconsider the decision to raise tariffs and support a more balanced approach that will help preserve the competitiveness of the Ukrainian mining and metallurgical industry, its contribution to the economy and the country’s wartime efforts, instead of causing additional damage to the industrial sector, national security and economic stability of Ukraine”, the metallurgists summarized.