Russian RZD calls for additional state support this year
Russian railway monopoly RZD has called on the Russian government to provide up to 140 billion rubles (US$4 billion) of subsidies from the federal budget for maintaining of financial stability of the company in 2016, according to an official spokesman of the company.
Such sum will be needed in the case of the increase of rail tariffs by 7.5% this year. At the same time the increase of tariffs for 13% will mean that the amount of the needed subsidies will be only 67.5 billion rubles.
This year the losses of the company are expected to reach 32 billion rubles, which, however, will be significantly lower the amount of losses in 2014, which were at the level of 44.1 billion rubles. This year RZD has already increased its tariffs by 10%, which is significantly higher, compared to other Russian state monopolies.
According to RZD, since 2010 the government has already provided to the company about RUB 200 billion for its development. For example, in 2010 54.2 billion rubles were provided. At the same time in 2013 this figure increased up to 23.7 billion rubles, while in 2014 up to 26.7 billion rubles.
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