Ukrainian railways are increasing their traffic rates.

Rail rates for goods transportation belonging to the 1st class in Ukraine will increase by 9% as of January 1, 2022. The decision primarily affects the transportation of iron ore, coal and puts industrial rail freight in danger. 1st class product charges were already increased by 8% in August 2021. The Ukrainian ministry of infrastructure stated back then that in 2022 1st class tariff pricing would increase by 20,4%. However, now it says that the government will implement gradual cost raises to “reduce the risks for the country’s economy and domestic producers”.

The Ukrainian authorities aim to use the resources coming from the increased tariffs to send out infrastructure and equipment upgrade projects.

“In 2021, the change in the level of rates should bring the Ukrainian Railways an additional UAH 2 billion (roughly 66 million euros). The company expects to receive another UAH 10 billion (332 million euros) in 2022. Given the additional increase, the total projected revenue next year will be UAH 12,3 billion (409 million euros)," explained the Ukrainian infrastructure ministry.

The circumstances do not seem that will change in the future. Prices will remain higher with the risk of jeopardizing rail freight amounts. Although, the relatively more reasonable price increase could help the market adjust to the changes cautiously.