The Federal Antimonopoly service of the Russian Railways put forward the conditions for doindeksatsii from July freight rate

The Federal Antimonopoly service of the Russian Railways put forward the conditions for doindeksatsii from July freight rate


Earlier Federal Antimonopoly service has proposed to index freight tariffs of RZD in 2016 5.5% from January and 4.2% from July. Additional indexing will hold if the company will fulfill the performance indicators.

MOSCOW, 16 Oct. The Federal Antimonopoly service of Russia proposes to spend additional indexation of railway freight tariffs from 1 July 2016 only, subject to fulfilment of performance indicators, said Deputy head of FAS Alexander Redko.

Earlier the Agency reported that offers to index freight tariffs of RZD in 2016 5.5% from January and 4.2% from July.

“Additional indexation in July we only consider if the company will fulfill the performance indicators. While the basic solution (for 2016 — ed.) is at 5.5%,” said Redko.

The Russian authorities had repeatedly stated the companies are not the need to cut costs. Medvedev in early September of this year reported that almost all companies with state participation have resources to reduce costs. Criticism of Railways had been subjected and also the head of the FAS Igor Artemyev, stating that the infrastructure monopoly is still inefficient spending and purchases, still contains non-core assets.

The government is now finalizing a position on the indexation of tariffs of natural monopolies in 2016. According to Minister of economic development Alexei Ulyukayev, decided that subsidies in 2016 will be only a suburban railway transportation and long-distance transportation and freight subsidies will not. The indexation of tariffs decision yet, but most likely, for freight it will be 10% and for passenger — 4%, the Minister said. In the area of passenger transportation FAS has no objection to the 4%.

Earlier in October, the head of Russian Railways Oleg Belozerov said that the company will need in 2016 to 22 billion rubles of subsidies in the indexation of freight tariffs by 10%. He noted that the company has already optimized by the following year its budget by 50 billion rubles. Earlier Russian Railways requested an index rate by 10% and allocate 75 billion rubles of subsidies.