Ukrainian Railways (UZ) introduced a ban on the use of foreign-owned wagons in late March. The move seeks to protect domestic owners by removing outside competition. Most affected by the ban are Baltic and Kazakh rolling stock owners.
Foreign rolling stock proved to be very helpful in the early months of the Russian invasion of Ukraine. Because Ukrainian Railways had the option to use those wagons, it could prevent a shortage and further limitations in transportation capacity. Estonian publication Postimees writes that with the occupation of eastern regions in Ukraine, the flow of goods has declined and there is now an excess of rolling stock.
As a result, local Ukrainian wagon owners have reportedly been lobbying for a ban on the use of foreign wagons. That would improve their market position by removing outside competition. There are 500 Estonian wagons in Ukraine right now with a total value of 20 million euros.
Estonian rolling stock owners express dissatisfaction with UZ’s ban, writes Postimees. They find it unfair that Ukraine is banning its wagons despite Estonia’s far-reaching support for the country.
How do your goods get into the Ukraine where they come from other adjacent countries without foreign wagons?