--- title: "A Perfect Storm for the MMC: Logistics Collapse and Rising UZ Tariffs Threaten to Halt Ukraine's Metallurgy" description: "🚨 Ukraine's MMC on the brink of collapse: closed ports and a 30% rise in UZ tariffs are leading to MEP shutdowns. Export losses could exceed 50%. Alexander Kalenkov called on the government to cancel the tariff hike and find alternative routes for product exports. #Ukrmetallurgprom #UZ #Economy" date: 2026-08-13T11:20:00.000Z lang: en url: https://xab.info/en/posts/ukraine-mmc-logistics-collapse-uz-tariffs-rise tags: [ukraine-economy, metallurgy, ukrmetallurgprom, uz-transport, logistics-crisis] publisher: "XAB.info" --- # A Perfect Storm for the MMC: Logistics Collapse and Rising UZ Tariffs Threaten to Halt Ukraine's Metallurgy ![Green freight railway wagons on tracks, symbolizing logistical issues and tariff increases threatening Ukraine's metallurgy](https://xab.info/media/2026/08/13/gmk-ukrainy-logisticheskiy-kollaps-tarify-uz/gmk-ukrainy-logisticheskiy-kollaps-tarify-uz-1.webp) ## 🎯 Key Points - Ukraine's MMC is facing a logistics collapse due to port blockades and a 30% rise in UZ tariffs. - Delivering pellets to Gdansk costs $50-60 per ton, making the route unprofitable. - Poltava, Southern, and Inhulets MEPs are either stopped or operating at minimum capacity. - Metal product export losses could exceed 50% of current volumes. - Alexander Kalenkov called on the government to cancel the tariff hike and find alternative solutions. Ukraine's Mining and Metallurgical Complex (MMC) is on the brink of total collapse. As of August 2026, the industry is facing an unprecedented crisis caused by a "perfect storm" of factors: the blockade of Black Sea ports, a critical rise in railway tariffs, and a shortage of energy resources. Alexander Kalenkov, President of the Association of Enterprises "Ukrmetallurgprom," warned in his column for GMK Center that without prompt action by the government and international partners, export losses could exceed 50% of current volumes. ### Logistical Deadlock: Closed Ports and High Transit Costs The main blow to the metallurgical sector was the inability to export products via traditional sea routes. Delivering pellets to the Polish port of Gdansk, which became a forced alternative, costs $50–60 per ton. This price makes the route economically unviable for most enterprises. The Danube ports, which could have served as a lifeline, are operating in a limited capacity due to low water levels. Even after the water regime is restored, they will be able to handle only about 10% of previous transport volumes. The port of Constanța in Romania is also unable to accept the necessary cargo volumes due to critical congestion and high logistics costs. As a result, mining and enrichment plants (MEPs) are forced to halt production, as there is simply no real alternative for exporting raw materials and products. ### Internal Crisis: MEP Shutdowns and Rising UZ Tariffs The situation on the domestic front is exacerbated by the decision of "Ukrzaliznytsia" (UZ) to raise freight tariffs by 30%. According to experts, the cumulative increase in transport costs to western border crossings has already reached 80–90% within Ukraine. This decision effectively puts an end to the profitability of exports via land corridors. The consequences are already felt in production: the Poltava MEP is operating at minimum capacity, the Southern MEP is completely stopped, and the Inhulets MEP has been idle for a long time. Alexander Kalenkov called on the government to immediately annul the tariff increase decision and restore previous rates on the western route to save the industry from bankruptcy. ### The "Perfect Storm" Effect and Economic Risks The combination of factors — port blockades, high electricity costs, new EU quotas, and rising UZ tariffs — has created a "perfect storm" for the MMC. Experts warn that if the situation does not change, losses in metal product exports could exceed 50% of current volumes. This would deliver a crushing blow to the country's economy, depriving it of one of its key sources of foreign currency revenue. Industry representatives emphasize that avoiding catastrophe is only possible through coordinated actions by the government and international partners. It is urgent to find compromise solutions regarding logistics and tariffs to preserve production capacities and jobs. ## 🔍 Fact-Check Verification - [Ukrmetallurgprom calls to abandon the 30% UZ tariff hike: this decision is made with ...](https://www.unian.net/economics/transport/ukrmetallurgprom-prizval-otkazatsya-ot-povysheniya-tarifov-uz-na-30-eto-reshenie-prinimaetsya-s-narusheniyami-13443651.html) - Подтверждает требование отменить повышение тарифов и указывает на нарушение процедур при принятии решения. - [Ukrmetallurgprom demands to stop the growth of UZ freight tariffs: Ukraine will lose billions ...](https://www.unian.net/economics/transport/ukrmetallurgprom-trebuet-ostanovit-rost-gruzovyh-tarifov-uz-ukraina-poteryaet-milliardy-dollarov-13399158.html) - Подтверждает требование отменить повышение тарифов и указывает на нарушение процедур при принятии решения. - ["Ukrmetallurgprom" calls to abandon the 30% UZ tariff hike](https://www.obozrevatel.com/ekonomika-glavnaya/ukrmetallurgprom-prizval-otkazatsya-ot-povyisheniya-tarifov-uz-na-30.htm) - Подтверждает позицию Укрметаллургпрома и указывает на критическую ситуацию в отрасли. ## ❓ FAQ ### Q: Why is Ukraine's MMC in crisis? **A:** The crisis is caused by the blockade of Black Sea ports, a 30% rise in UZ tariffs, and a shortage of energy resources. ### Q: Which MEPs are stopped? **A:** The Poltava MEP is operating at minimum capacity, the Southern MEP is stopped, and the Inhulets MEP is idle. ### Q: What does Alexander Kalenkov propose? **A:** He called on the government to cancel the UZ tariff hike and find alternative routes for exports. ### Q: What are the forecasts for export losses? **A:** Metal product export losses could exceed 50% of current volumes.