---
title: "“A Road Nowhere”: Business Demands a Halt to the New Wave of UZ Freight Tariff Hikes and Proposes a “Railway Ramstein”"
description: "The president of “Ukrmetallurgprom,” Kalenkov, stated that a repeat increase in UZ freight tariffs would accelerate the shift of cargo onto roads. Business proposes introducing a PSO mechanism for passenger transport."
date: 2026-09-15T10:22:01.000Z
lang: en
url: https://xab.info/en/posts/ukrzaliznytsya-freight-tariffs-pso-business-criticism
tags: [ukrainian-railways, freight-tariffs, pso-mechanism, logistics, ukraine-economy, railway-transport, agrarian-sector, metallurgy]
publisher: "XAB.info"
---

# “A Road Nowhere”: Business Demands a Halt to the New Wave of UZ Freight Tariff Hikes and Proposes a “Railway Ramstein”

![Ukrzaliznytsia freight wagons with UZ logo at a station — rising freight tariffs theme](https://xab.info/media/2026/09/15/ukrzaliznitsya-tarify-gruzovye-perevozki-pso-biznes-kritika/ukrzaliznitsya-tarify-gruzovye-perevozki-pso-biznes-kritika-1.webp)

## 🎯 Key Points

- The 30% increase in UZ freight tariffs since August 2026 has already led to a decline in freight volumes, and a new hike, in business’s assessment, would accelerate the shift to road transport
- Alexander Kalenkov proposed introducing a PSO mechanism for passenger transport to relieve the burden on the freight segment; the bill is already before the Verkhovna Rada
- Among the alternative solutions are targeted financing of UZ, the restoration of solidarity corridors, and the creation of a “Railway Ramstein” to attract locomotives
- The agricultural sector earlier called on Prime Minister Horetzkyi to postpone the tariff increase, pointing to a critical moment for the export campaign

At a meeting of the relevant subcommittee of the Verkhovna Rada on railway transport, the president of “Ukrmetallurgprom,” Alexander Kalenkov, delivered a sharp critique of “Ukrzaliznytsia’s” intentions to once again revise freight tariffs upward. In his assessment, such a step would not only fail to close the budget deficit of the monopoly, but would also act as a catalyst for the mass shift of freight flows onto road transport, dealing an additional blow to domestic industry and logistics. The statement came against the backdrop of the freight tariff increase of 30% already implemented in August 2026, after which, according to Kalenkov, freight volumes began to decline as expected.

### The PSO Mechanism: a European Model Instead of a Burden on Shippers

Kalenkov’s central proposal was the introduction of a PSO (Public Service Obligation) mechanism for passenger transport. Under this model, the state acts as the customer of intercity, suburban, and international passenger services provided by “Ukrzaliznytsia,” compensating for the difference between the actual cost of carriage and the approved passenger fare. “If the state decides that ticket prices will be below the cost of carriage, the state should compensate the difference through the budget,” emphasized the head of “Ukrmetallurgprom,” adding that such an approach fully aligns with European practice. A bill enshrining the mechanism of state compensation for the passenger segment is already before the Verkhovna Rada, and its adoption, in the view of business, would relieve the excessive financial burden on the freight segment, which today effectively subsidizes the loss-making passenger segment.

### A 30% Jump and the Closure of the Sea Corridor: a Double Blow to Freight Flows

Analyzing the current financial position of “Ukrzaliznytsia,” Kalenkov pointed to two key factors simultaneously pressuring the freight segment. The first is the tariff increase of 30% already in effect since August 2026, after which shippers began to reassess their logistics chains. The second is the near-total closure of the sea corridor, which deprived Ukrainian exports of a significant share of alternative routes and shifted an additional burden onto the railway infrastructure. Against this backdrop, in Kalenkov’s assessment, any further increase in the cost of rail transport becomes “a road nowhere”: enterprises will switch to road transport even more actively, and the monopoly will lose the volumes it so desperately needs to cover its operating costs. He separately noted that even before the latest increase, Ukrainian rail tariffs remained higher than those in Poland, Slovakia, and a number of other European Union countries, making Ukrainian logistics less competitive in both domestic and transit markets.

### “Railway Ramstein” and Solidarity Corridors: a Package of Proposals for the Cabinet

In addition to criticizing tariff policy, Kalenkov outlined a set of alternative solutions that, in his conviction, can genuinely strengthen the financial position of “Ukrzaliznytsia” without an additional burden on shippers. These include attracting targeted state financing to cover the monopoly’s deficit, restoring the so-called “solidarity corridors” for Ukrainian cargo, and creating a new coordination format that Kalenkov called the “Railway Ramstein.” The latter envisages centralized cooperation with international partners to attract locomotive stock for “Ukrzaliznytsia,” which is especially relevant given the shortage of traction power. According to Kalenkov, all of the initiatives listed were presented at the subcommittee meeting and received the support of representatives of the Ministry of Infrastructure. Business also called on Members of Parliament to forward the corresponding proposals directly to the Cabinet of Ministers for adoption at the government level.

### The Agricultural Sector: a Decision Made at a Critical Moment

Criticism of “Ukrzaliznytsia’s” tariff policy is not limited to the metallurgical industry. Earlier, the All-Ukrainian Agrarian Council and the “Ukrainian Agrarian Business Club” association sent an appeal to Prime Minister Serhiy Horetzkyi calling for a postponement of the freight tariff increase. The agricultural sector emphasizes that the government’s decision is being made at a critical moment for the export campaign and is capable of worsening producers’ losses, reducing the volumes of agricultural product exports, and aggravating the overall economic situation. Thus, pressure to reconsider UZ’s tariff policy is being generated by several industry lobbies at once — from metallurgy to the agro-industrial complex — indicating the systemic nature of the contradiction between the monopoly’s financial model and the capacity of the country’s freight economy to bear it.

Against the backdrop of these statements, the question of exactly which instrument the state will use to cover “Ukrzaliznytsia’s” deficit — through budgetary compensation of the passenger segment, targeted financing, or international coordination — becomes one of the key issues for Ukraine’s railway industry in 2026. The outcome of the consideration of the corresponding PSO bill in the Verkhovna Rada and the Cabinet of Ministers’ response to the package of business proposals will determine whether it will be possible to avoid a scenario in which rising tariffs lead to an irreversible loss of freight flows in favor of road transport.

## 🔍 Fact-Check Verification

- [Rising “Ukrzaliznytsia” tariffs cut cargo volumes: business proposes a “Railway Ramstein”](https://www.rbc.ua/ukr/news/pidvishchennya-tarifiv-ukrzaliznitsi-skorochue-1789467651.html) - Основной источник: заявление А. Каленкова на заседании подкомитета ВР, детали по PSO, 30%-ное повышение, предложения по Рамштайну и коридорам солидарности.
- [“Ukrzaliznytsia” raises freight transport tariffs](https://delo.ua/ru/news/ukrzaliznycya-povysaet-tarify-na-gruzovye-perevozki-469997/) - Подтверждает факт повышения грузовых тарифов УЗ.
- [“Ukrzaliznytsia” updates tariffs for freight wagons and platforms: how this will affect logistics](https://delo.ua/ru/news/ukrzaliznycya-obnovila-tarify-na-gruzovye-vagony-i-platformy-kak-eto-povliyaet-na-logistiku-468227/) - Подтверждает факт повышения грузовых тарифов УЗ.
- [Ukrzaliznytsia raises tariffs: what changes from 1 August](https://minfin.com.ua/2026/06/22/176312510/) - Подтверждает дату вступления в силу повышения (1 августа 2026) и размер изменения.

## ❓ FAQ

### Q: By how much did “Ukrzaliznytsia” raise freight tariffs in August 2026?
**A:** From 1 August 2026, “Ukrzaliznytsia” raised freight tariffs by 30%. According to the assessment of Alexander Kalenkov, president of “Ukrmetallurgprom,” freight volumes began to decline after this step.

### Q: What is the PSO mechanism and why is it being proposed for “Ukrzaliznytsia”?
**A:** PSO (Public Service Obligation) is a mechanism under which the state orders passenger transport from “Ukrzaliznytsia” and compensates for the difference between the cost of carriage and the passenger fare. This would relieve the financial burden on the freight segment. The bill is already before the Verkhovna Rada.

### Q: What is the “Railway Ramstein”?
**A:** It is a coordination format with international partners proposed by Alexander Kalenkov, which would allow locomotives to be attracted for “Ukrzaliznytsia” in a centralized manner. The name is a reference to the “Ramstein” format in NATO’s defense sphere.

### Q: Which industries have spoken out against the increase in UZ freight tariffs?
**A:** Criticism was voiced by the metallurgical sector (through “Ukrmetallurgprom”) and the agricultural sector (the All-Ukrainian Agrarian Council and the “Ukrainian Agrarian Business Club”). Farmers called on Prime Minister Horetzkyi to postpone the increase, pointing to the threat to the export campaign.