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Posted On

26
August
2021

Confederation of Builders of Ukraine calls on authorities to revise rail traffic tariffs

KYIV. Aug 26 (Interfax-Ukraine) – The growth of railway tariffs for freight transportation will lead to an increase in prices for industrial products, the cost of raw materials and a rise in the cost of housing and road construction, the Confederation of Builders of Ukraine believes.

The organization sent an official letter to the authorities, in which it drew attention to the consequences of the increase in tariffs and called for a revision of the unreasoned tariff policy of Ukrzaliznytsia. Thus, in the opinion of confederation participants, the increase in tariffs for cargo transportation will create an additional burden on the budget, which threatens the timely implementation of the Big Construction program, and also stimulates the growth of the cost of raw materials and industrial products. In addition, the new tariffs will affect the cost of housing construction, which will affect home prices for buyers.

"The worst consequence of the unplanned increase in tariffs will be the suspension of investment activities of companies, which are forced to revise their budgets in the middle of the third quarter of this year. This will lead to a decrease in capital investment and may affect the social guarantees of ordinary workers," it noted.

The confederation proposes to create an authority for state regulation in the field of transport for the transition to a more effective practice of forming the tariff policy of Ukrzaliznytsia, to hold a joint meeting with representatives of the construction industry to discuss and revise tariffs.

As reported, Ukrzaliznytsia from August 17, 2021 increased tariffs for freight rail transportation in accordance with the order of the Ministry of Infrastructure. Earlier in July, the Ministry of Infrastructure announced a draft order on a two-stage increase in tariffs for cargo transportation for goods of groups 1 and 2 from September 2021 by 8%, and from January 2022 – by 20.4% and 6.5%, respectively.