KIEV, Jan. 17 - Ukrainian steel mills are alarmed at the planned increase in railway tariffs for cargo shipments, which will yield additional costs of around UAH3.3 billion, Vasyl, Kharakhulakh, the director general of industry association Metallurgprom said at a meeting of representatives of mining and metallurgical companies in Dnipropetrovsk.

He said that additional expanses would cut the steel mill's profit. Kharakhulakh said that Ukrainian steel mills in 2007 saw UAH13.7 billion in pretax profit and their average profitability was 16.3%, while in 2006 it was 15.7%.