Liberalization of the railway transportation market in Ukraine, similar to that in European Union countries, could be a decisive factor in reducing transportation costs and improving service quality. Experts point out that the opening of the market to competition in the EU has contributed to lower prices for both freight and passenger transport, as well as significantly improved service levels.
This is reported by Finway
Government Plans and Risks of Tariff Increases
In Ukraine, the government is preparing to implement the liberalization of the railway market with the aim of harmonizing national legislation with EU standards and opening the sector to competition. However, currently, “Ukrzaliznytsia” is pursuing a course of increasing tariffs for freight transportation in 2026. Specifically, tariffs are planned to be raised in two stages: initially by 27%, and then by an additional 11%. Representatives of industrial sectors express concerns that such a decision by the state monopoly could lead to a further decline in freight transportation volumes.
EU Experience and Opportunities for “Ukrzaliznytsia”
In European Union countries, the introduction of competition has effectively restrained the growth of prices for railway transportation and improved service quality. Research and surveys of market participants in various EU countries confirm the positive impact of liberalization on the industry. Ukrainian experts emphasize that “Ukrzaliznytsia” should also adopt this experience instead of increasing tariffs.
“Liberalization of the railway market in the EU has led to lower prices for freight and passenger transport, as well as improved service quality. This experience should be adopted by ‘Ukrzaliznytsia’ instead of raising tariffs for freight transportation.”
Furthermore, “Ukrzaliznytsia” is considering the possibility of localizing the production of high-speed Intercity+ trains in Ukraine, with subsequent purchases of such trains from South Korea, which could serve as an additional incentive for the development of the industry and the enhancement of the technological level of the national carrier.