The Ukrainian Agri Council, together with leading agricultural associations that are part of the public union "Ukrainian Agrarian Forum," has appealed to the Prime Minister of Ukraine Serhii Koretskyi with a request to personally intervene in the situation surrounding the increase in tariffs for freight rail transportation planned by JSC "Ukrzaliznytsia."

The agricultural sector categorically opposes the mechanical increase in tariffs by 30%, which leaves the discriminatory tariff system in effect and continues the practice of cross-subsidizing other industries at the expense of farmers.

"First of all, we want to certify that we understand the need to raise tariffs to ensure the break-even and, accordingly, stable and uninterrupted operation of Ukrzaliznytsia. But we categorically object to the manner in which it is proposed to do this, as one that simultaneously leaves part of the transportation loss-making, continues the shameful practice of subsidizing metallurgical and other oligarchs at the expense of farmers, and hampers the optimization of Ukrzaliznytsia's operation," the appeal notes.

Farmers emphasize that, due to the blockade of the sea ports, the production of agricultural products in Ukraine has become loss-making, which leads to the threat of mass bankruptcies of agricultural enterprises. Under these circumstances, the further subsidization of the transportation of coal, construction materials, or metallurgical raw materials at the expense of the transportation of grain and meal is absolutely unacceptable.

Instead of preserving the classification of cargo by type, farmers propose to introduce a transparent and unified tariff-setting mechanism, where the cost of transportation is calculated according to the principle: the objective prime cost of transportation plus a normative level of profitability.

According to the UAF's estimates, such a system would create economic incentives for the market to reduce the prime cost of transportation through the development of block-train shipments and logistics hubs, the relocation of near-production capacities closer to consumers, and the return of the freight turnover that "Ukrzaliznytsia" has lost (in particular, fuel transportation, which has massively reoriented to road transport due to high railway rates).

The agricultural associations reject the arguments of the Ministry of Development of Communities and Territories of Ukraine (letter of July 20, 2026, No. 19322/47/10-26), in which the department referred to court decisions (including the Supreme Court) as grounds for the lack of justification for leveling tariffs.

The UAF notes that the courts annulled the previous orders of the Ministry of Development solely due to formal violations during the preparation of the Regulatory Impact Analysis, and not because the leveling of tariffs itself is unlawful.

"The courts substantiated their position by formal violations in the preparation of the regulatory impact analysis, without asserting that the leveling of tariffs is in itself unlawful... Since an analysis of alternative options for state regulation, if it is conducted impartially, in a reasoned manner, and in accordance with the requirements of the law, will, on the contrary, show that it is necessary to adopt precisely the decision to terminate the practice of cross-subsidization and the differentiation of tariffs by classes of cargo," the document emphasizes.

The agricultural associations call on the Prime Minister to take the industry's position into account when making a decision on the tariff policy of "Ukrzaliznytsia" and to prevent steps that could jeopardize the stability of agricultural production and Ukraine's export potential.

The appeal was signed by the heads of the public union "Ukrainian Agrarian Forum," the Agrarian Union of Ukraine, the Ukrainian Agri Council, the Poultry Breeders Union of Ukraine Association, the Ukrainian Agrarian Confederation, the Ukrainian Agribusiness Club Association, the Association of Milk Producers, the Pig Breeders of Ukraine Association, and the National Association of Sugar Producers of Ukraine.