The first phase of indexation of freight transport rates within Ukraine to the level of the industrial producer price index can be performed no earlier than April this year.

Andrii Riazantsev, the financial director of the Ukrainian Railways joint-stock company (JSC Ukrzaliznytsia), announced this in comments to the GMK Center, the CFTS portal reports.

“The Ministry of Infrastructure’s draft order on raising freight transport rates by 14.2% appeared only on February 15. Therefore, its introduction after a public debate and registration in the Ministry of Justice can be expected from about April 1," the financial director of Ukrzaliznytsia is quoted as saying.

As the CFTS portal reported earlier, the Ministry of Infrastructure launched a public debate on the draft order approving indexation of state-regulated freight tariffs to the level of the producer price index (PPI) on February 15.

Initially, Ukrzaliznytsia planned to implement the first phase of indexation of freight tariffs on February 1, but businesses opposed such an initiative. As a result, the 14.2% tariff increase was postponed to March 1. The next phases are scheduled for May 1, August 1, and November 1.

The Ukrainian Federation of Metallurgists recently stated that approval of Ukrzaliznytsia’s initiative on introduction of automatic indexation of freight transport tariffs to the level of the industrial producer price index would lead to an additional increase of UAH 12.7 billion in industrial producers’ costs.

Representatives of grain traders also opposed the Ukrzaliznytsia initiative. According to the Ukrainian Grain Association’s President Mykola Horbachov, automatic indexation of Ukrzaliznytsia’s freight transport tariffs will significantly affect the pricing system on the grain market.