Vowing a “record increase in tariffs,” Infrastructure Minister Alexander Kubrakov plans to raise iron and coal rail freight rates to those of grains.
For years, farmers have complained that Ukrzaliznytsia grain rates subsidize below market freight rates for iron, coal, cement, and fertilizer producers. Across the board, all rates would increase by 8% in September 2021. In January 2022, grain rates would increase again by another 6.5%, but the freight for the wider category would go up by 20.4%. This “rate convergence” would bring an extra $400 million to the state railroad fiscal coffers next year.