If the country allows Ukrzaliznytsia to raise freight rates, it should be prepared to close businesses, - Metinvest
Date: 2025-01-27 Author: Кирило Загоруйко Categories: ECONOMY
Due to the war, Ukrainian businesses have numerous problems and can only plan their activities a few weeks in advance. The main goal of the industry is to survive, keep their teams and stay afloat. In this situation, Ukrzaliznytsia's intention to raise freight rates by 37% will lead to large losses and the closure of enterprises. This was stated by the head of the Metinvest Project Office, Oleksandr Vodoviz, on the air of the Pryamiy TV channel.
"Rates are growing everywhere now - for electricity transmission, water supply, and gas transportation. State monopolies are raising tariffs in order to completely shift their growing costs onto the shoulders of consumers. But businesses that produce goods and provide services at market prices are the ones that pay taxes, and it is from taxes that we can finance defense. Therefore, the state must make a choice. If the state is ready for businesses to close and taxes to be less and less, raise tariffs further. Then the state will not receive money to counter aggression, because taxes are essentially the only source of financing the Defense Forces," Vodoviz emphasized.
He said that some Metinvest enterprises have already stopped, and the situation will significantly worsen if logistics costs increase. But Ukrzaliznytsia has ways to reduce costs, because it is currently financing inefficient enterprises within its structure.
"We have the Ingulets Mining and Processing Plant at a standstill, 3 thousand people without work. Repair enterprises have stopped. Therefore, we come to Ukrzaliznytsia and explain that we do not have a financial reserve. Increase your labor productivity, close inefficient enterprises. And there is a lot of inefficiency there, and this is a good time to reform Ukrzaliznytsia and make it competitive. But there is no reaction. The situation now is such that state monopolies, like Ukrzaliznytsia, feel comfortable. We have been losing for three years, while UZ has made a profit. Thus, in 2023 it was 5 billion hryvnias," Vodoviz emphasized.
As is known, the Supervisory Board of Ukrzaliznytsia agreed to increase freight tariffs by 37%. The project is currently under consideration by the Ministry of Development of Communities and Territories of Ukraine. At the same time, for the 3 quarters of 2024, UZ received UAH 1.7 billion in net profit - this, according to market experts, allows the company to maintain the freight tariff at the current level.
Business associations, including international chambers of commerce, criticized the tariff increase and warned of the significant risks it poses to the economy. And ArcelorMittal Kryvyi Rih announced the threat of closing the plant and laying off 20 thousand workers.
