Ukraine's steel industry is suffering from rising electricity prices, higher rail tariffs, increased scrap exports, weak conditions on international markets, and a lack of protection for the domestic market, Kamet Steel CEO Oleksandr Tretyakov said at a meeting of Prime Minister Yuliya Svyrydenko with business leaders in Dnipro on Thursday.
Tretyakov said he participated in the meeting as part of the social dialogue, since Kamet Steel is the largest employer in Kamianske and all of these issues will inevitably affect the company's ability to sustain jobs and maintain workers' social standards.
"Today, Ukraine's steel industry is facing unprecedented challenges. Steel prices are under pressure due to poor market conditions and increased competition from China, Türkiye, and Russia. In such circumstances, it is crucial to avoid decisions that could further weaken the position of Ukrainian producers," the CEO said.
Among the most critical issues, he cited the unacceptable increase in rail tariffs. He noted that producing one tonne of steel products requires transporting about three tonnes of raw materials.
"Already today, according to our logistics teams, freight tariffs at Ukrzaliznytsia are higher than actual rates in Poland and Slovakia. Even a slight increase would significantly raise the cost of steel production and undermine competitiveness. Ukrzaliznytsia has a chronic problem of loss-making passenger transport. The request is to subsidize this social segment from the state budget (about UAH 20 billion in 2026 to cover the passenger segment's deficit), while its freight operations are profitable and do not require state support," Tretyakov said.
He also pointed out that tariffs charged by transmission system operator Ukrenergo for power transmission and dispatch services are trending upward. Draft tariffs for 2026 foresee a combined increase of $5/MWh, with some cost items appearing inflated. In an environment of weak demand and intense international competition, any rise in these tariffs undermines the competitiveness of Ukrainian exporters. He urged the government to prevent tariff hikes by Ukrenergo in 2026.
