Industrialists urged Kubiv and Omelyana for open discussion of the financial plan of UZ for 2017

Representatives of industrial associations of Ukraine warned the Cabinet about the possible decline as a result of increase in tariffs for railway transportation
This is stated in the joint letter of the head of the Federation of metallurgists of Ukraine Sergey Belenky, President OP “Ukrmetallurgprom” Alexander Kalenkova, President of Ukrainian grain Association Mykola Gorbachov, President of the “Union of chemists of Ukraine” Oleksiy Golubov, Executive Director of the Ukrainian Association of ferroalloys and other electrometallurgical products “of Ukrainian Academy of pharmacy” Sergey Kudryavtsev, Executive Director of the Association of cement producers of Ukraine “Ukrcement” Roman Skilsky, Vice-President of the Association of glass industry enterprises “Glass of Ukraine” Vladimir Tsvetova first Vice Prime Minister – Minister of economic development and trade of Ukraine Stepan Kubiv and Minister of infrastructure of Ukraine Volodymyr Omelyan.
Industrialists report that, despite numerous appeals to the leadership of PJSC “Ukrzaliznytsia” for a number of problems related to tariff policy, provision of wagons, increasing the capacity of key railway sections, etc., the questions still remain unresolved.
“In the last three months there has been a significant deterioration in the real situation, particularly in the mining, engineering, construction and energy industries, which in the first place connected with the loss of a significant number of industrial and mining capacities on the temporarily uncontrolled territory and the need to seek alternative sources of technological circuits corresponding raw materials, semi-finished products and energy. The situation is further complicated by problems with rail, in particular, the railroad is the main limit to the expansion of production in Mariupol and increase shipment through the ports of Odessa”, – said in the letter.
So, according to the State statistics Committee, the level of industrial production in February 2017 fell 2.2% compared to January 2017.
“The total losses of Ukrainian economy from the termination of messages from outside the control area will be known only closer to the middle of 2017, but already it is clear that the impact of these developments will have extremely negative influence on further economic growth. In such circumstances, the tariff policy should be balanced and aimed at stabilization of the situation in the real sector of the economy, and the efforts of the state transport monopoly focused on improving the quality of services at minimum cost to the economy,” say the Industrialists.
They recalled that currently, the management of JSC “Ukrzaliznytsya” plans to submit for approval a financial plan for 2017. However, in spite of declarations on “transparency”, the state monopolist still has not provided for public review detailed draft financial plan (with design tables and all the necessary explanations), and not published for review, even the preliminary financial report on the results of 2016.
“It seems that the new leadership of PJSC “Ukrzaliznytsia” does not hurry to bring to the consideration of this fundamental document for the major shippers, the consolidated share in the total volume of freight is more than 90%, and behind the scenes trying to agree on a financial plan and regular indexation of tariffs that will allow monopolies in the short term to significantly increase revenue and it management to obtain material compensation for the performance of financial indicators of the enterprise entrusted to them in accordance with the signed their employment contracts is not due to the initiatives implemented for improvement in the management of the railway transport and due to the arithmetic increase in tariffs (this is evidenced by statements in the press by individual managers of PJSC “Ukrzaliznytsia” about the plans for the indexation of the tariffs on 22 … 25% already in June-July 2017)”, – reported the representatives of the associations.
Industrialists stress that the adoption of such important document, as a financial plan, PJSC “Ukrzaliznytsia”, is possible only after open public debate with the main consumers of services of state monopoly.
In this regard, representatives of the Association addressed to S. Kubiva and V. Omelyan with the request as quickly as possible and to fully contribute to the public discussion of the financial plan of PJSC “Ukrzaliznytsia” and the involvement of Plenipotentiary representatives of all stakeholders, primarily key domestic shippers and industry associations.

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