Railway Tariff Indexation for Agribusiness Is Inevitable – Taras Vysotsky

Gradual alignment of railway tariffs and the transition to indexation based on cost structure is a logical and inevitable solution for agribusiness logistics. This was stated by Taras Vysotsky, Deputy Minister of Economy, Environment, and Agriculture of Ukraine, during the “Doing Agribusiness in Ukraine” conference, reports ProAgro Group.

He emphasized that amid wartime challenges and significant pressure on transport infrastructure, tariff indexation is only a matter of time. However, the model for its implementation should be uniform and understandable to all market participants.

“It is impossible to say that there will never be indexation. It is definitely inevitable. The only question is how to make it as consensual as possible,” said Vysotsky.

According to the deputy minister, the government considered several options for changing railway tariffs.

“The approach of uniform calculated indexation, rather than proportional, is more logical. Businesses understand the cost structure and the calculations,” he stressed.

The Ministry of Economy, Vysotsky added, will not only participate in discussions but also act as the official body approving the final tariff strategy.

The deputy minister also noted positive changes in state-business cooperation in recent years. In his view, the agribusiness sector needs a permanent platform for in-depth expert discussions.

As previously reported, Ukrzaliznytsia plans to increase freight tariffs by 41.5% next year.

Source: AgroPortal

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