According to UNIAN, citing a letter from Ukrmetalurgprom to the Prime Minister of Ukraine and the Head of the President's Office, the industry association urges the government to prevent an increase in Ukrzaliznytsia's (UZ) freight tariffs in 2026. The appeal highlights that a 37% tariff hike could cost the economy nearly UAH 100 billion in GDP, around $2.4 billion in foreign exchange earnings, over UAH 36 billion in budget revenues, and at least 76,000 jobs. According to business estimates, if a 45% increase is considered, the negative impact on the industry and adjacent sectors will be even more severe.
What the Potential Transport Cost Increase Means for the Mining and Metal Sector
The appeal emphasizes that the mining and metal complex remains one of the cornerstone sectors of the Ukrainian economy, generating about 5.5% of GDP, $6 billion in export earnings, and over UAH 150 billion in tax revenues. At the same time, the financial standing of enterprises remains strained: last year, the industry's total net loss reached UAH 28 billion. Against this backdrop, any further increase in the transportation component directly inflates the cost of ore, pig iron, steel, and finished metal products.
Furthermore, Ukrmetalurgprom points out that some production capacities are already idle, while others operate at partial utilization. For these enterprises, any new tariff burden could lead to the final closure of individual facilities. An additional risk is that the cost of transporting metal products by rail, including the rolling stock component, already exceeds road logistics in some cases, prompting a shift of cargo to the roads.
Statistics also underscore the scale of the problem: mining and metal cargoes, including iron ore, ferrous metals, coal, coke, and fluxing limestone, account for an average of 47% of Ukrzaliznytsia's total freight volume. However, in 2025, the sector's transport volume was 53% lower than in 2021, totaling 76.8 million tons. This means that tariff decisions for the railway directly affect not only steelmakers but also UZ's own freight base.
Impact on the Steel Market and Solutions from winox.ua
For the metal market, a potential increase in freight tariffs translates into further rising logistics costs throughout the entire supply chain—from raw materials to finished rolled steel. Under these conditions, buyers are paying closer attention not only to metal prices but also to supply reliability, shipment schedules, and service flexibility. This is why for industrial consumers, construction companies, and manufacturing enterprises, partnering with suppliers who can guarantee predictable procurement terms is becoming crucial.
As a supplier of stainless steel, non-ferrous metals, and rolled steel products for the B2B segment, winox.ua is committed to ensuring that clients receive stable pricing, transparent commercial terms, and reliable deliveries, even during periods of high market volatility. This approach helps businesses plan production budgets more effectively and mitigate the impact of logistical fluctuations on the final cost of goods. For the market, this is no longer just a marketing advantage but a practical risk management tool.
Ukrmetalurgprom also warns of the risk of a so-called "tariff spiral," where each consecutive hike shrinks the freight base, which in turn prompts further tariff revisions. Consequently, the association proposes a moratorium on freight tariff increases until the end of martial law, compensation for passenger segment losses from the state budget, and attracting international funding for infrastructure restoration. For metallurgy, machine building, and the entire rolled steel market, the decision regarding UZ tariffs in 2026 will carry strategic importance.