The Federal Tariff Service Board during its Wednesday session made a decision to increase Russian Railways (RZD; RTS: RZHD) cargo tariffs by 5.7 % from July 1, the FTS representative, Anna Martynova has reported according to RZD-Partner.
"The decision of the FTS Board provides for a 5.7 % growth on all tariff rates, payments and gatherings on freight traffic by rail, except for special military cargoes," informed A.Martynova. She advised that exclusive freight rates will also grow by 5.7 %. The indexing of rail cargo tariffs was made according to decisions approved at the end of December 2008, which assumed increases of 5% from January 1 and 5.7 % from July 1.
At the end of May an RZD representative declared that either a 7.6 % rise in tariffs, or an allocation of an additional 29.6 billion roubles would be necessary in order for the company to come to break-even point in 2009.
During the St.-Petersburg Economic Forum First Vice-Premier of the Russian Federation, Igor Shuvalov, said that the Government of the Russian Federation was considering the monopoly’s proposal to increase cargo railroad rates by 7.6 %. At that point Mr I.Shuvalov noted that the decision on the size of the increase would be made when the Government was clear about the makeup of the 2010 Budget.
Last year FTS made two off-schedule increases on RZD freight rates: 1 % from April and 8% from July.
The size of RZD’s tariff indexation for 2010 is still unclear too. In various scenarios (which are being prepared by the Ministry of Economic Development of the Russian Federation), depending on developments in the economy, both a 10 % and 1-1.5 % tariff rise are considered. A source familiar with the course of discussions of the document has explained to "Interfax", that the main dispute is not taking place around the size of the increase, but around the amount of compensation which will need to be allocated to the monopoly in order to cover its losses from tariff incomes in 2009 and in 2010.
"The decision of the FTS Board provides for a 5.7 % growth on all tariff rates, payments and gatherings on freight traffic by rail, except for special military cargoes," informed A.Martynova. She advised that exclusive freight rates will also grow by 5.7 %. The indexing of rail cargo tariffs was made according to decisions approved at the end of December 2008, which assumed increases of 5% from January 1 and 5.7 % from July 1.
At the end of May an RZD representative declared that either a 7.6 % rise in tariffs, or an allocation of an additional 29.6 billion roubles would be necessary in order for the company to come to break-even point in 2009.
During the St.-Petersburg Economic Forum First Vice-Premier of the Russian Federation, Igor Shuvalov, said that the Government of the Russian Federation was considering the monopoly’s proposal to increase cargo railroad rates by 7.6 %. At that point Mr I.Shuvalov noted that the decision on the size of the increase would be made when the Government was clear about the makeup of the 2010 Budget.
Last year FTS made two off-schedule increases on RZD freight rates: 1 % from April and 8% from July.
The size of RZD’s tariff indexation for 2010 is still unclear too. In various scenarios (which are being prepared by the Ministry of Economic Development of the Russian Federation), depending on developments in the economy, both a 10 % and 1-1.5 % tariff rise are considered. A source familiar with the course of discussions of the document has explained to "Interfax", that the main dispute is not taking place around the size of the increase, but around the amount of compensation which will need to be allocated to the monopoly in order to cover its losses from tariff incomes in 2009 and in 2010.