The simultaneous increase in electricity transmission rates and the cost of rail freight transport is placing an additional burden on the production costs of Ukrainian manufacturers and the competitiveness of the economy.
This was reported by RBC-Ukraine, citing a statement by Vladimir Shchelkunov, president of ICC Ukraine. He believes that the tariff increases are a double blow to the country’s economy.
Risks for Industry and Exports
According to the president of ICC Ukraine, the consequences will affect more than just individual companies, as the rate hikes will have a ripple effect on the extractive industries, metallurgy, machine building, the agricultural sector, construction, and exports.
In his view, companies that are major electricity consumers and rely on rail logistics are particularly vulnerable. Rising costs for them will mean:
- shrinking profit margins;
- a deterioration in the competitive position of Ukrainian products;
- and, in some cases, the risk of reduced or halted production.
