The court recognised the increase in railway cargo transportation tariffs as invalid
According to the press service of JSC ‘Ukrzaliznytsia’, on 12 August 2024, the Kyiv District Administrative Court invalidated the order of the Ministry of Infrastructure of Ukraine dated 29 October 2021 No. 586 ‘On Amendments to the Coefficients Applicable to the Tariffs of the Tariff Manual for the Transportation of Cargo by Rail within Ukraine and Related Services’.
The press service of JSC ‘Ukrzaliznytsia’ states:
‘Private companies that are part of a large industrial group are using the courts to try to cancel changes to cargo transportation tariffs that were agreed and implemented in 2021-2022. In the event of a large-scale invasion, such actions could have critical consequences for the country’s economy and defence capabilities.
Two other similar cases are being considered by other administrative courts.
The Company considers this decision to be unreasonable and unfounded, as the court went beyond its powers in considering the case and assessed the feasibility of changing the cost of tariffs, rather than the compliance of such a decision of the state authority with legislative acts. In fact, the court took over the powers of the Ministry of Infrastructure and other bodies that had approved the relevant order and determined its expediency, validity and legality – the Ministry of Economy, the Ministry of Finance, the State Regulatory Service and the Ministry of Justice. Ukrzaliznytsia considers such actions unacceptable and will appeal this court decision.’
From the Association. The Order of the Ministry of Infrastructure of Ukraine No. 586 dated 29 October 2021 concerned the increase of the Coefficients applicable to the tariffs of the Tariff Manual for the transportation of cargo by rail within Ukraine, namely for the transportation of a group of cargoes of the first tariff class (including ore and coal) from 2.204 to 2.402, i.e. by 9%, from 1 January 2022.
The decision of the Kyiv District Administrative Court was made on 11 July 2024 in administrative case No. 640/33910/21 under the claim of DTEK Zakhidenergo, a part of DTEK holding, 100% of which is owned by SCM Limited (ultimate beneficiary Rinat Akhmetov).
The Association reminds that the Ministry of Infrastructure of Ukraine by its Order No. 441 dated 22 June 2022 amended the Coefficients applicable to the tariffs of the Collection of Tariffs for the Carriage of Goods by Rail within Ukraine, increasing them for absolutely all types of cargo by 70% at once (for the Association’s correspondence with the Ministry of Justice of Ukraine and the State Regulatory Service of Ukraine on this issue, see the Association’s Bulletins dated 18 July, 8 August and 25 October 2022, 19 January, 14 February and 10 March 2023).
The Association also informs that none of the aggregates enterprise has contacted the Association regarding the adoption of the Order of the Ministry of Infrastructure of Ukraine No. 441 dated 22 June 2022 with numerous violations of the current legislation.
13.08.2024
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