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Ukrainian Railways Expects Freight Tariff Increase Soon

A senior official at Ukraine's State Rail Company said that the company anticipates that the government will increase freight transport rates soon, despite resistance from farmers and steelmakers.

Ukrzaliznytsia announced last year that it would raise freight rates by 37% in order to cover significant increases in fuel, electricity, and equipment repair costs as it attempts to deal with the effects caused by Russian attacks.

The agricultural producers, however, said that the move could cause some farmers to go bankrupt as it would increase their transport costs from $3 to $6 per ton.

Rail.insider, a specialist media outlet, quoted Valeriy Tkachev as the deputy head of Ukrzaliznytsia's commercial department.

"I believe there will be indexation regardless." Tkachev stated that the Ministry of Development, Ukrzaliznytsia’s regulator will decide the size of indexation.

He said that the tariff could increase by 20 to 40 percent.

Tkachev said that the logistics costs would increase by $4 per ton, and "wouldn't have a negative impact on the agriculture sector".

The Ukraine is one of the world's largest producers and exporters of agricultural and metal products. These are transported via rail to seaports before being exported. (Reporting and Editing by Mark Potter.)

(source: Reuters)