Ukraine's economy lost over UAH 200 billion due to Ukrzaliznytsia

Over UAH 200 billion lost by Ukraine's economy due to imitation of Ukrzaliznytsia reform

The Ukrainian economy has already lost over UAH 200 billion due to the lack of real reform Ukrzaliznytsia, This has led to a long-term shift in the financial burden from passenger to freight traffic. This was reported by Interfax-Ukraine with reference to analytical assessments of the business community.

Experts estimate that since 2012, companies have been systematically overpaying for rail transport due to inflated monopoly tariffs used to cover losses in the passenger segment.

Details of the case

It's not just about financial losses for businesses. The excessive tariff burden has directly affected the modernisation of railway infrastructure, investment attractiveness and competitiveness of Ukrainian products in foreign markets.

Economists note that these funds could have been used to upgrade rolling stock, develop logistics, create jobs and increase tax revenues. Instead, the industry continues to operate with critical levels of wear and tear and low efficiency.

Context.

The article notes that further increases in freight tariffs without structural changes will only accelerate the outflow of cargo from Ukrzaliznytsia to alternative modes of transport and deepen the crisis in the economy.

Analysts emphasise that without opening the market, creating a competitive environment and clearly distinguishing between passenger and freight transport funding, losses will continue to grow.

UAH 200 billion is the price that the Ukrainian economy has already paid for imitation reforms, and without systemic solutions, this amount is not final.