Govt to present finalized option for size of subsidies for RZD in two weeks - Dvorkovich
ST. PETERSBURG. June 20 (Interfax) - The Russian government is planning to prepare a finalized option for the size of subsidies for OJSC Russian Railways (RZD) , Russian Deputy Prime Minister Arkady Dvorkovich told journalists.
"For now the calculations have not been completed. I ordered that more balanced proposals with account of the possibility of raising effectiveness be finalized and presented in two weeks," he said.
The Economic Development Ministry said that the baseline option for the indexation of railway tariffs on cargo transportation in 2016 is 7.5%. A range for the indexation of railway tariffs in 2016 is being permitted - 7.5%-10%. According to the ministry's calculations, indexation by 7.5% is enough in order to balance the financial model of the railway monopoly and not post losses.
At the same time the ministry is allowing for the provision of a subsidy if needed. As the Economic Development Ministry expected, one percentage point of indexation gives additional revenue of about 11 billion rubles, therefore the difference in the range of 2.5 percentage points, will allow one to speak about the possible volume of subsidies of 25 billion-27 billion rubles.
