Ukraine’s Infrastructure Ministry is delaying the publication of a widely awaited decree that increases Ukrzaliznytsia’s rail freight tariffs. A circulated draft decree stipulated a freight rate increase for all goods by 22.5% starting from 1 October and was supposed to have been published on the same day. A 22.5% growth in freight rates as of October was assumed in the business plan of Ukrzaliznytsia and approved by the Ukrainian government in mid-September.
The State Regulatory Service refused to approve a 22.5% rate hike two weeks ago, suggesting that Ukrzaliznytsia should find consensus on the tariff increase with its key consumers. The acting CEO of Ukrzaliznytsia revealed last week his readiness to discuss that, while no information on the results of such a discussion has appeared so far.
The delayed tariff increase could undermine Ukrzaliznytisa’s fulfilment of its business plan for 2017.
Share on:
