Ukrainian media are spreading information regarding a possible increase in freight tariffs by JSC "Ukrzaliznytsia" of up to 40% in total. PJSC "Zaporizhstal" regards this initiative as unacceptable and destructive amid the war, when every tonne of Ukrainian steel, every export contract, and every job is of strategic importance for the economy of a nation at war.
Zaporizhstal is one of the leading metallurgical companies in Ukraine, an export-oriented integrated company, ensuring stable supplies of steel products for industry. In 2024, the plant produced 3.1 million tonnes of pig iron, 2.9 million tonnes of steel, and 2.4 million tonnes of rolled products accounting for over 11% of pig iron and steel production and 29% of rolled products in Ukraine. The enterprise exports its production to more than 40 countries worldwide, guaranteeing stable foreign currency inflows into the Ukrainian economy. Over 2024, the total amount of taxes, fees, and duties paid into Ukraine's consolidated budgets was UAH 1.8 billion. The plant is a city-forming enterprise of the frontline Zaporizhzhia region, a key employer and a partner in the implementation of social projects supporting the Zaporizhzhia community.
Despite the challenges of war, Zaporizhstal is currently operating at 75% of its full capacity, supporting a stable production cycle and ensuring currency inflows to Ukraine. The enterprise has not only preserved jobs, but also continues to implement investment programmes aimed at increasing efficiency and energy-resilience. In 2025, Zaporizhstal carried out a complex of major overhauls of key units of the heat and power plant — boiler unit No. 5, turbine generator unit No. 1, and turbo compressor unit No. 7. Approximately UAH 75 million in investment was allocated for this purpose.
Overall, the enterprise's capital investment budget for 2025 is planned at a level of over UAH 1 billion, serving as a testament to faith in and support for the Ukrainian economy even under extraordinarily difficult circumstances. However, all these investment plans, as well as production stability and tax payments, are at risk due to a further increase in freight tariffs. The increase in logistics expenditures will directly impact the cost of production and thus the competitiveness of products on external markets, calling into question the company's very survival and employment of not only its 8,000 workers, but also thousands of specialists in related industries.
The increase in freight tariffs during such a difficult period will effectively mean a blow to the competitiveness of Ukrainian metallurgy as a whole and Zaporizhstal in particular. The increase in transport costs will directly increase the production costs of steel products, which are already under pressure from high prices for energy and raw materials, as well as duties on external markets. The increase in rail tariffs will put at risk Zaporizhstal production, as some products may become economically unviable for production and export.
The increase in the cost of raw material logistics will also be significant. Due to combat operations, Zaporizhstal has lost the opportunity to receive coal by rail from Pokrovsk, the closest source of supply. Now, the plant is forced to purchase coal on international markets, and the logistics component already exceeds 10% of the coal price. Any further increase in tariffs will only intensify this pressure and threaten stable production operations.
Ukrzaliznytsia must remain a partner to industry, not a factor that weakens it. Enterprises that currently ensure currency inflows, jobs, and pay taxes cannot be hostages to a monopolist's short-sighted tariff policy. Today, the highest value for any national manufacturer and state monopoly must be joint action in the national interests of Ukraine, which is fighting for its survival and its future.
PJSC "Zaporizhstal" calls on the government of Ukraine and the Ministry of Communities, Territories and Infrastructure to prevent decision-making that will exacerbate the economic crisis in industry, and asks it to refrain from an increase in rail tariffs for 2025 and 2026 to preserve the existing production capacity, support exports, and strengthen the financial stability of the state.
The workforce of PJSC "Zaporizhstal"