Ukraine Steel Union Warns 45% Rail Tariff Hike Threatens 300,000 Jobs

2 articles · Updated · Reuters · Jun 9

300,000 jobs could be lost and some plants permanently shut if Ukrzaliznytsia pushes through a freight tariff increase of at least 45%, steelmakers' union UkrMetalurgProm said.
28 billion hryvnias in sector losses have already weakened Ukraine's steel industry, the union said, arguing higher transport costs could tip partially operating facilities into closure.
160 million metric tons of rail freight are projected for 2026, down from about 314 million in 2021, with the union attributing roughly half the drop to occupied territories and lost industrial assets.
Ukrzaliznytsia says the increase is needed to cut losses and restructure significant debt, while steelmakers argue freight customers are being made to absorb passenger losses and structural inefficiencies.
The dispute highlights a wartime squeeze on Ukraine's economy, as exporters warn higher rail costs would erode competitiveness when the country needs output, foreign-currency earnings and jobs.