People’s deputy: Issue of Ukrzaliznytsia tariffs will be decisive test for Minister Kuleba
Consideration of the issue of indexing railway tariffs in 2025 will be a key driver of influence on the port industry, the development of the road sector, the stable operation of enterprises, and other regional policy priorities. Therefore, this issue is a test for Minister of Recovery Oleksii Kuleba.
This was stated by Musa Mahomedov, People's Deputy of Ukraine, Chairman of the Subcommittee on Industrial Policy of the Verkhovna Rada Committee on Economic Development, Censor.NET reports.
"Kuleba's dilemma: to choose between the interests of the state-owned company, which, after two years of profitable activity, predicts an increase in costs, a decrease in revenues and, accordingly, large losses, or support for community development, will be a decisive test for the specialized minister, Oleksii Kuleba," the People's Deputy said.
He noted that the draft financial plan for 2025 presented by Ukrzaliznytsia envisages a 6% reduction in the tariff revenue base, despite the fact that all the main cost items of the monopoly company are expected to grow significantly.
"Macroeconomic forecasts suggest that Ukraine's GDP will grow by 3-4%. However, instead of attracting new cargo and using the potential of economic growth, UZ proposes to cover the difference between revenues and rising costs by raising the monopoly component of freight transportation tariffs, which will ultimately lead to the laundering of business funds, a drop in the competitiveness of national enterprises' products and the outflow of the cargo base to alternative modes of transport," the People's Deputy emphasized.
According to him, the consequences of the increase in UZ tariffs will be especially noticeable in communities and territories where large industrial enterprises are concentrated and will reduce production. Another powerful factor of influence at the regional level may be the destruction of roads as a result of the transition of goods to road transport. Also in the "risk zone" are port companies, for which the increase in tariffs will lead to a reduction or even a complete halt in cargo flows in certain areas.
"Minister Oleksii Kuleba is responsible for a wide range of regional policy and infrastructure issues. However, it is necessary to make a balanced and informed decision," Magomedov summarized.
As you know, UZ completed three quarters of 2024 with a net profit of UAH 1.66 billion. UZ's revenue in January-September increased to UAH 78 billion, which is 17% more than in the same period last year. At the same time, the company significantly increased its operating expenses and initiated a 37% increase in freight transportation tariffs. Businesses opposed this decision, as the consequences for the economy could be catastrophic: the Danube Shipping Company announced that it would stop its fleet if the tariff was increased, and ArcelorMittal Kryvyi Rih warned of the risk of closing its plant, which employs 20,000 people.
