Tariffs for transportation of goods by rail will be increased by 12.5% this summer, which translates to an annual average increase of 6.2%, the press service of the State Railway Administration (Ukrzaliznytsia) has announced.

Tariffs for all types of freight (domestic, export, and import) will rise.

The relevant draft order of the Ministry of Infrastructure has already been prepared at the initiative of Ukrzaliznytsia and published on the ministry’s official website for public discussion.

"The draft order also provides for elimination of the imbalance in the current tariffs for transportation of grain by rail. In particular, it provides for establishment of a uniform coefficient for tariffs for transportation of grain by rail, regardless of the type (domestic, export, or import). This will allow increase of the tariffs for domestic transportation of grain freight,” Ukrzaliznytsia said in a press release.

According to Ukrzaliznytsia, increase of freight rates is necessary for partial stabilization of the financial state of the industry, and the funds thus generated will be spent on maintenance of rolling stock and traffic safety. In addition, UAH 7.4 billion in profits from freight transportation is expected to be used to cross-subsidize passenger traffic in in 2014.

As reported, Ukrzaliznytsia’s First Deputy Director General Maksym Blank said on Thursday that it was agreed to raise freight rates by 7.5% during a discussion in the government.