Head of the Rada Committee Viktor Medved: Raising the tariffs of Ukrzaliznytsia will hit the economy of Ukraine

The increase in freight transportation tariffs is completely unjustified, the MP believes.

"Ukrzaliznytsia plans to raise tariffs for freight and passenger transportation, but a number of experts warn of the danger of such a move for Ukraine's economy.

Viktor Galasyuk, chairman of the Verkhovna Rada Committee on Industrial Policy and Entrepreneurship, is convinced that the increase in railway tariffs will hit every consumer and many entrepreneurs in Ukraine.

"The increase in freight transportation tariffs is completely unjustified. Today, we need to support the domestic industry in every way possible, and not resort to such draconian methods. This will affect not only jobs but also investments, transportation and exports," said Viktor Galasyuk.

"In addition, such an increase will hit every consumer in Ukraine: every product has a price component that is related to the cost of transportation. Accordingly, this step will serve as an additional factor for unwinding the inflationary spiral. This process will potentially affect jobs and the profitability of enterprises," the MP explained.

Viktor Medvid, director of William invest expert consulting company, compared the situation at Ukrzaliznytsia to the situation in the Kyiv subway on the Holos Stolytsi radio station.

"The railroad has many ways to implement reforms without raising tariffs. The structure has a lot of hidden income streams that are actually sources of enrichment for local corrupt administrators," Medved said.

"Each station is a source of shadow revenues from the operation of bus station sites, parking lots, ATMs, vending and trade equipment. Not a single hryvnia of this income from economic traffic has been redirected to the budget," he added.

"In fact, if revenues from rail transportation account for 50% of the railroad's budget, everything else is non-core revenues from advertising and trade," Medved explained.

A significant number of Ukrainian industrial enterprises will suffer losses, and some may lose European and global markets because their products will become uncompetitive. "Ukrzaliznytsia is a monopolist in the railroad transportation industry, so producers have no alternatives.