The state monopoly decision could lead to the cessation of several key industries, including cement.
Ukrzaliznytsia decided to sharply increase freight rates without discussion with business representatives. The company’s decision to raise the price immediately by 70% was criticized by the executive director of the Association Ukrcement Lyudmila Kripka.
“It just showed us one fact. When UZ announced the discussion about raising tariffs by 70%, the order to raise them was already signed. And with all the justifications and legality of raising tariffs by “70%, we haven’t heard from the company how it will reduce its costs. It’s a one-way road, where UZ just shifts all its costs to the consignor’s shoulders,” Kripka said.
According to him, UZ also wrongly presented the results of the impact of the tariff increase on the value of the final product.
“I’ll explain using cement as an example. They only include the transportation of cement itself in the infrastructure part. At the same time, they don’t take into account the transportation of raw materials, which for us is limestone, and for us this. will increase the price by 55%. In addition, the transportation of coal and fillers does not include even the distance of the tariff – and it all affects the final cost of the products, “he explained.
In addition, the head of Ukrcement warns that the situation will worsen in August due to UZ plans to change the calculation for the use of wagons.
“If earlier the fee was charged for the actual use of the wagon, then from August the fee will be charged for how long it is on the road. Considering that the UZ has a large cargo and the wagons take very long, we understand that this wagon will also stay on the road for a very long time And this financial burden will once again fall on our shoulders, ”Kripka insisted.
In connection with the current situation, the business offers to the authorities to introduce a moratorium on raising tariffs of state monopolies for the duration of martial law and 6 after its completion.
“Cement is a strategic raw material for the reconstruction of the country. And all we are doing now, we are investing in increasing Ukraine’s restoration costs. We will just take the cement businesses into bankruptcy and take the strategic industry to destruction for restoration, ”he concluded.
Earlier, the CEO of Metinvest Yuriy Ryzhenkov called the logistics problem the main one for economic development in conditions of war – the export of products of Ukrainian businesses has become unprofitable due to a significant increase on the cost of delivering the products.
Because of this problem, Metinvest, Arcelor Mitall Kryviy Rih and Ferrekspo began to stop or reduce the work of their businesses.
The European Business Association warns that raising rail freight rates could lead to the collapse of key industries.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.