Ukrainian Railways (UZ) has prohibited the use of foreign rolling stock for domestic transportation as per 16 March. Perhaps expectedly, the restriction does not sit well with businesses. It is not the first time that they protest UZ policies.
More specifically, the ban considers the use of wagons belonging to foreign railway administrations and private wagons registered under other railway administrations for domestic transportation. As a result of UZ’s measure, those wagons can now only be used in international transport.
The European Business Association (EBA) calls for UZ to revert course. It points out that foreign wagons managed by UZ are not subject to the restriction, which creates an uneven playing field on the rail freight market. Foreign rolling stock helped Ukraine cope with a shortage following Russia’s invasion of the country. UZ was not able to provide sufficient freight services at the time.
Competitiveness
Even if that situation has changed for the better during the past three years, UZ cannot count on businesses’ enthusiasm for the new restriction. It has “caused concern and confusion among freight shippers and wagon operators”, EBA says. “In their view, these measures lack sufficient justification and could lead to an artificial shortage of loading capacity, anti-competitive practices in the market, higher transportation costs, and a decline in the global competitiveness of Ukrainian goods.”
As a solution, EBA proposes an agreement on a standard contract for the operation of freight wagons in Ukraine’s domestic rail network and ensuring their interoperability.
Tariff increase
EBA’s protest against UZ’s measure is not the first time that the rail operator and businesses go head to head. Measures similar to the current rolling stock restriction were introduced in September 2024, but were suspended following strong opposition from businesses and industry associations. Businesses have also protested UZ tariff increase plans.