KYIV: A proposed sharp increase in Ukraine’s rail freight tariffs could put up to 300,000 jobs at risk in the country’s steel industry, the Ukrainian steelmakers’ union warned on Monday.
The warning comes amid plans by state railway operator Ukrzaliznytsia to raise freight tariffs by around 45 percent in 2026, a move aimed at addressing financial losses and restructuring debt after sustained damage to infrastructure during the ongoing war.
According to industry representatives, the proposed increase could severely undermine the competitiveness of Ukraine’s steel exports, which are already under pressure from reduced production capacity, rising energy costs, and war-related disruptions.
The steelmakers’ union said the additional transport costs could force further shutdowns across the sector, which has already seen significant contraction since the start of the conflict with Russia. It argued that any further cost burden could accelerate job losses and deepen economic strain in export-oriented industries.
Railway officials have defended the planned tariff adjustment, saying it is necessary to stabilize the company’s finances following repeated attacks on critical infrastructure, including locomotives, depots, and energy supply systems. The operator has also cited mounting operational losses and debt pressures.
Industry groups, however, have pushed back against the proposal, warning that higher logistics costs would erode Ukraine’s export competitiveness at a time when the economy is already under severe stress.
The dispute highlights growing tensions between state infrastructure financing needs and industrial survival concerns in wartime Ukraine, where both the railway and steel sectors remain central to national economic stability.