Page 54 - UKRRptJul22

that Naftogaz would supply natural gas to gas distribution system operators at a fixed price during martial law and for six months after its end. Most of these operators have now become state property. "The Government's decision is another step towards stable gas supplies for all consumers and stable operation of our gas transmission system," according to the Prime Minister.
9.1.2 Automotive sector news
The fuel crisis in Ukraine has increased the demand for electric vehicles.
In May 2022, the Ukrainian fleet was replenished with 1,016 fully electric cars, 63% more than a year ago, reported Ukravtoprom. “Moreover, the number of new vehicles registered was 28% against 11% last year. Compared to the previous year, in May registration of fully electric passenger vehicles jumped by almost 67%," according to a Ukravtoprom statement. Out of the 32 commercial electric vehicles that received Ukrainian license plates last month, there were no new cars. Compared to May 2021, the demand for commercial electric vehicles has not changed. In total, during the first five months of 2022, 3,090 electric vehicles have received new license plates in Ukraine, which is 2.5% more than in 2021. The most popular electric cars are the Nissan Leaf and Tesla Model 3.
9.1.3 Transport sector news
● Trains
The EU expects Ukraine to export more grain but receives iron ore. While the ports are blocked, the Ukrainian agricultural sector is trying to develop new export logistics by rail, road, and river across the border with EU countries. The average daily volume of rail transfers through the 13 border crossing points with the EU has been around 1,900 rail cars per day. In fact, there is competition between different types of cargo for the opportunity to fit into this tight schedule and get through the overall accumulated queue for rail cars. Currently, iron ore accounts for a significant share of exports by rail. In May 2022, about 850 wagons of ore were shipped daily, which was more than 50% of total rail exports. An interesting fact is that grain competes with ore for both narrow-gauge cars and capacity of rail border crossings with the EU. And so far, unfortunately, the agricultural sector has been losing the competition. It is clearly not in favor of the competitive nature of the transportation sector or the long-standing preferences shown to ore carriers - lower tariffs for transportation and low rates for the use of rail cars. Regardless, Ukrainian Railways (UZ) continues to transport iron ore at a loss while trying to recover their shortfall at the expense of other cargoes.
Ukrainian Railways raises tariffs for freight transportation by 70%. The Ministry of Infrastructure of Ukraine agreed with Ukrainian Railways’ (UZ) proposal to increase cargo transportation tariffs by 70%. In contrast to several previous increases last year, the rates have increased equally - by 70% - for all 20 types of cargo. “On July 1, 2022, the Ministry of Infrastructure will conduct a planned indexation of tariffs for freight," stated the CEO of UZ, Alexander Kamyshin. Due to the tariff increase, the state railroad company plans to generate an additional UAH 11B of revenue by the end of 2022. The extra income will be able to cover some of the estimated costs of repairing war damage that exceed UAH 100B ($3.1B).
54 UKRAINE Country Report XXXX 2018 www.intellinews.com