The state railway administration (Ukrzaliznytsia) has been authorized to grant discounts of up to 50% on transportation of transit freight through Ukraine. The relevant provision is contained in the Ministry of Infrastructure’s order that amended the procedure for setting coefficients to CIS countries’ base railway tariffs for transportation of international freight and transportation of transit freight. The document was registered in the Ministry of Justice on July 30, the Interfax Ukraine news agency reports.
According to earlier reports, the explanatory note to this document states that a flexible procedure for establishing the level of railway component that responds quickly to the changes occurring on the consumer market of raw materials was needed in order to preserve the existing contracts, which have tended to be short-term recently, and attract new sales volumes.
"The aim of adoption of this order is to empower Ukrzaliznytsia to set preferential tariffs with discounts of up to 50% on the tariffs established in the tariff policy stipulated in the criteria for making decisions on establishment of coefficients to the base rates of the tariff policy," the note states.
According to experts with the Ministry of Infrastructure, implementation of the order will ensure favorable tariff conditions for preservation of the existing and attraction of new transit freight through Ukraine.