Steelmakers insist on a moratorium on the growth of railway tariffs

Federation of metallurgists of Ukraine, the Association of enterprises “Ukrmetallurgprom” and the Ukrainian Association of ferroalloys manufacturers (Ukrainian Academy of pharmacy) insist on the introduction of moratorium on increase of railway tariffs for cargo transportation before the creation of the National Commission on regulation of tariffs (NCRT). It is reported

“You need to enter the moratorium on increase of railway rates before the creation of the regulatory body, the national Commission. We promise to create such an Agency in 2014, but it still is not” – said the head of the Federation of metallurgists of Ukraine Sergei Belenky at a press conference on Wednesday.

According to him, the shippers, the question arises, why 25% of UZ decided to raise the rates. “No tariff structure. Now, the profitability of cargo is 25-50%, which subsidized companies”, – said the head of the FMU.

In addition, he said that due to new tariffs, “Ukrzaliznytsya” will receive additional income of about 10.5 billion UAH.

Alexander Kalenkov, President OP “Ukrmetallurgprom”, is also in favour of a moratorium to the creation of the regulator.

“It is impossible to raise tariffs to create NCRT. Once established, such a body will immediately go the conflict of interests,” he said.

In comments to business portal UAprom Kalenkov said that the growth of tariffs for Ukrainian MMC entry would result in additional losses “two hundred million dollars.”

Sergey Kudryavtsev, Executive Director of the Ukrainian Association of producers of ferro-alloys (Ukrainian Academy of pharmacy), supported colleagues.

“We believe that this Commission is needed. She calculates this rate. In fact, most TIES do not know what is in the tariff. They are only to the Collection of rates from 1986 add some correction factors”, – he said, adding that the 25% growth of tariffs for ferrosplavov will cost UAH 200 million additional costs for the year.