The «Ukrmetallurgprom» Association has called on the government to prevent «Ukrzaliznytsia» from increasing freight tariffs by 30% and to restore them to the level seen at the start of 2026. The association warns that, with ports blocked, higher transport costs could lead to businesses shutting down, a reduction in exports, foreign exchange earnings and tax revenues.
Briefly about the main points
- Steelmakers are asking the government not to increase Ukrainian Railways’ freight tariffs for 30%.
- The industry links the rise in transport costs to the risk of businesses having to shut down.
- For every tonne of metal, approximately three tonnes of raw materials need to be transported.
- Since the ports were closed, logistics costs have already risen two or three times.
Rising logistics costs are putting further pressure on manufacturers
Ukrmetallurgprom states that the metallurgical industry is already operating at full capacity due to the war, port blockades, EU quotas and the mechanism CBAM. To produce one tonne of metal, around three tonnes of raw materials need to be transported, so transport costs have a significant impact on the cost price of the products.
Since the ports were closed, logistics costs for companies in the sector have already risen two to three-fold. According to the association’s estimates, a further increase in tariffs will lead to a decline in exports and foreign exchange earnings, as well as a reduction in tax revenue.
The sector is calling for port logistics to be restored first
The steelmakers are proposing, first and foremost, to unblock the seaports and restore normal logistics, and only then to return to the issue of rail transport costs. They are also demanding that tariffs be restored to their early 2026 levels.
