Business associations recognize that the decision to raise tariffs was prompted by systematic attacks on port infrastructure and the blocking of sea lanes. For this reason, farmers are already facing delays in grain shipments to foreign markets. Meanwhile, the capacity of railway border crossings with EU countries remains critically insufficient.
Given the additional 30% tariff increase, the cost of shipping a metric ton of wheat to the port of Constanța—where it sells for about $210/t—will leave Ukrainian farmers with no more than $140–150/t. This means they will be forced to operate at a loss.
According to estimates by Ukrzaliznytsia, the company is capable of transporting only about 1 million metric tons of agricultural products per month, while demand stands at 5.6 million metric tons.
Logos Pressnotes that this spring and in the past, Moldovan traders periodically used the servicesof “Ukrzaliznytsia” because, from their perspective, the “price/ quality” of the Ukrainian rail carrier, in their view, was better than that of Moldova’s rail operator.
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