Belozerov: the Railways will adjust the investment program in 2016

MOSCOW, 11 February. JSC “Russian Railways” (RZD) will adjust the investment program in 2016, told reporters the President of the company Oleg Belozerov.

Answering the question whether the adjusted investment programme for 2016 in the first quarter, the head of Russian Railways said, “Will be adjusted. In what direction – is unclear, we conduct regular budget of the Commission.”

The RZHD’s investment program for 2016 was approved at $ 432 billion.

In January Belozerov has informed that the Railways in the past month and a half will make a decision about necessity of updating of the investment program. The Minister of transport of Russia Maxim Sokolov then said that the cuts in the investment program of Russian Railways is planned.

In turn, Vice-President Mikhail Akulov said that Russian Railways notes the reducing demand for foreign passenger transportation. “We for foreign destinations in a difficult situation. We see a drop in demand for these transportation and, including, because of the increasing cost of travel,” said he.

“The trains far abroad, we use the reduction factor, but the difficulties that now with the exchange rate (ruble), at the next rising trends in the value of foreign currency immediately end up hurting us. So to say that we found a scenario of development of tariff policy finally, we can’t. We have to respond practically online, on the short-term period, in this matter,” – said Akulov.

According to him, the administrations of Railways of CIS countries is now conducted bilateral work aimed at finding solutions for the reduction of tariffs to the end user. However, this leads to a loss of economic efficiency of operation of trains and generates losses, which are borne on the Railways.