OREANDA-NEWS. July 28, 2010. Mr. Azarov, the Prime Minister of Ukraine, has made a stand against a special privileged tariff for railway services granted for steelmakers and chemical producers within the framework of a mutual agreement between the Government and the manufacturers. The Prime Minister pointed out that the extension of tariffs would both  hamper a robust competitive environment and trigger losses for the Ukrainian railways.

Millennium Capital deems this news as positive for the Railways bonds. As soon as a new tariff replaces the current low one effective from the fall 2008, Ukrzaliznytsia financials will be substantially boosted, as the great bulk of its revenue is generated by cargo transportation services.