We hope for the ministry: UZA urged not to raise prices for Ukrzaliznytsia’s cargo

Photo by UNIANUkrainian farmers have already experienced several tariff increases from state monopolists, and they call on the responsible authorities not to increase the tariff for Ukrzaliznytsia cargo transportation. Currently, the decision regarding this increase has not yet been made, so they are placing their hopes on the Ministry of Development, says the president of the Ukrainian Grain Association (UZA) Mykola Gorbachev.

“We appealed to Ukrzaliznytsia, they are sending us to the ministry. The decision has not been made yet, everyone is waiting for the ministry. But it seems to us that there have already been several increases. And this is quite enough not to raise the price of grain additionally. We do not support it.” – emphasized Gorbachev.

According to farmers’ calculations, if the tariff is increased, the cost of transporting grain will increase by 30-40%. Therefore, the Antimonopoly Committee should also be involved in the consideration of the situation, he is convinced.

“The Antimonopoly Committee should intervene and regulate this pricing. They have legislative levers to solve it. But, of course, due to production necessity, they may not pay attention to such levers,” says Gorbachev.

We will remind, according to the results of three quarters last year, Ukrzaliznytsia received UAH 1.7 billion in net profit. At the same time, the company significantly increased operating costs, and because of this, initiated a 37% increase in freight rates.

Business associations criticized this decision and warned of significant risks for the economy that it carries. Thus, the ArcelorMittal Kryvyi Rih plant warned that it may close the plant, which employs 20,000 people. And the Danube Shipping Company announced the danger of stopping the fleet in the event of a tariff increase.