FRTU: the increase in the cost of rail transportation will negatively affect the country’s economy

A draft order was published on the website of the Ministry of Infrastructure of Ukraine, according to which it is proposed to increase tariffs for railway transportation of goods:

FRTU believes that a sharp increase in tariffs will entail negative consequences for other sectors of the Ukrainian economy:

– Through the reorientation of goods from rail to road transport, the load on the roads will significantly increase, which will lead to a deterioration in their quality.

– If tariffs for railroad transportation of coal rise, wage arrears in mines will increase.

– Significant increases in the cost of transporting basic goods such as coal, grain and building materials will only accelerate inflation.

– As a result, the MIU initiative will lead to a decrease in the competitiveness of Ukrainian exports in the world market and an economic recession will occur.

If this order is approved, then for customers with whom we have a contract with a fixed price, the cost will not change.