The increase in Ukrzaliznytsia tariffs is turning into an "additional tax" for farmers, says Sokolov.

Published 2025년 12월 15일

Tridge summary

The proposed increase in freight tariffs by Ukrzaliznytsia, which is set to begin in 2026, threatens a significant deterioration of the agrarian sector's economy and an acceleration of the shift of agricultural produce from rail to road transport. It is expected that starting from January 1, 2026, transportation will become 27% more expensive. This was stated by Mykhailo Sokolov, Deputy Head of the All-Ukrainian Agrarian Council, during the conference "Conducting Agribusiness in Ukraine," as reported by the UAC. "It is well understood by everyone how the domestic price of agricultural produce is formed. It is tied to the export parity — the export price minus logistics costs and the trader's margin. Therefore, for farmers, the increase in Ukrzaliznytsia tariffs is actually something akin to an additional tax. Why a tax? Because we still have cross-subsidization, and it persists, and cross-subsidization is a tax. It turns out that farmers are paying not for services, not for their cost, but for making things cheaper for someone else. Moreover, according to Ukrzaliznytsia itself, the tariff on grain..."

Original content

The proposed increase in freight tariffs by Ukrzaliznytsia, which will begin in 2026, threatens to significantly worsen the economy of the agricultural sector and accelerate the transition of agricultural products from rail to road transport. It is expected that from January 1, 2026, transportation will become 27% more expensive. This was stated by Mikhail Sokolov, Deputy Chairman of the All-Ukrainian Agrarian Council, during the conference "Conducting Agribusiness in Ukraine," as reported by the UAC. "Everyone understands well how the domestic price of agricultural products is formed. It is tied to the export parity — the export price minus logistics costs and the trader's margin. Therefore, for farmers, the increase in Ukrzaliznytsia tariffs is actually something like an additional tax. Why a tax? Because we still have cross-subsidization, and it remains, and cross-subsidization is a tax. It turns out that farmers are paying not for services, not for their cost, but for making ...
Source: Agravery

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