Russian Railways cut transport costs by 0.7% in 2014, Yakunin says
As a result of anti-crisis measures, Russian Railways reduced the cost of transportation by 0.7% in 2014, announced Company President Vladimir Yakunin at a Board Meeting on the results of Russian Railways in 2014. Press center of Russian Railways says the Meeting was held in Moscow on 17 December 2014.
"This year has been extremely difficult for us. We had to work in the gap between macroeconomic forecasts, which were the basis for the Company's budget, and the actual situation," said Vladimir Yakunin.
According to Yakunin, the Company was able to cope with the situation only by improving its work processes.
The President of Russian Railways highlighted the negative impact of not increasing railway tariffs in 2014, which should have stimulated industry and contributed to slowing inflation. Yakunin stressed that while freight transport tariffs remained at 2013 levels, the cost of the fuel used by the Company rose by 11%, its electricity by 6.3% and metals by 5.2%.
In addition, the Holding Company had to compensate for the effect of tax increases and deductions, namely the abolition of privileges on the property tax and the increase in insurance premiums, by mobilising its internal resources.
In 2013, Russian Railways paid 237.2 billion roubles in taxes to budgets of all levels, but in 2014 the figure was more than 255 billion roubles.
"In 2013, the Company's expenditure base was reduced to 100 billion roubles and to 85 billion roubles in 2014. In 2015, in accordance with a Russian Government decision, we will reduce costs by another 5.5 billion roubles," said Vladimir Yakunin.