The government approved a plan to rescue the Russian Railways from losses

The action plan intends a balance between raising prices, subsidies and cost reduction

29.Jul.14 5:07 AM
By Ube Salorainen
Photo regnum.ru

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The government approved a plan to rescue the Russian Railways from losses

The government approved the action plan for the preservation of break-even activity of the Russian Railways during the implementation of the investment programme. It was reported by ITAR-TASS with reference to its sources in the Department. But the final balance between price increase, receiving subsidies fr om the state and the reduction of expenses will be approved in November.

In July the Russian President instructed the Government to study the question on indexation of railway tariffs by 10 % beginning from January 1st, 2015. The indexation rate has always been a stumbling block for Russian Railways, officials and carriers - the main question is the impact of tariffs on railway transportation for inflation, which is expected to reach 6 % next year.

The alternative instead of raising tariffs for railway transportation remains the state support and reducing monopoly costs. Customers of the Russian Railways are against tariff rise. For example, representatives of the steel industry, wh ere there are no alternatives to railway transport, believe that indexation of prices could adversely affect the industry as a whole.

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