Despite all its recent freight growth and international expansion plans, Ukrainian Railways now finds itself in a problematic situation. The Ukrainian operator says that it is facing potential bankruptcy, after a number of companies have succeeded in annulling a 2021 rail tariff hike via a Kyiv court.

Ukrainian Railways announces that it is now in troubled waters, according to a post on its Telegram channel. “Private companies using the courts are trying to reduce tariffs for themselves, which will cause the bankruptcy and shutdown of Ukrainian Railways”, it says.

According to the company, an undisclosed number of private companies in a “large industrial group” succeeded in annulling a 2021 government decision to raise rail tariffs. A court document reveals that one of the suing companies is DTEK Zahidenergo, a Ukrainian energy company.

In the 2021 government decision, the Ministry of Infrastructure changed the tariff coefficient from 2,204 to 2,402 for first class cargo. This class primarily includes raw materials, according to a Ukrainian publication.

Ukrainian Railways to appeal decision

The Kyiv court is now also looking into two more related cases, says Ukrainian Railways. However, the company is not waiting around and announced that it is appealing the court’s annulment of the 2021 tariff decision. It argues that the court did not evaluate the legality of the measure, but rather the political expediency of it. Ukrainian Railways says that the court overstepped its boundaries and will appeal the decision.