Econ Ministry finds proposal to give RZD 140 bln rubles in 2016 subsidies above company's actual needs - Ulyukayev
BRUSSELS. May 19 (Interfax) - The Russian Economic Development Ministry believes the proposal to give Russian Railways (RZD) 140 billion rubles in 2016 subsidies when tariffs are indexed at 7.5% is two or three times higher than the company's actual needs, Economic Development Minister Alexei Ulyukayev told reporters in Brussels on Monday.
He confirmed that the government has approved tariff indexation ranges at 7.5%-10% for railway shipments in 2016, at 7.5%-11% for electricity transmission to grid companies, at 7.5%-9% for heat, at 7.5% for gas to industry and at 8.5% for gas to households.
"The Economic Development Ministry's proposals were for 2016 tariffs to be indexed at 7.5%. Our position hasn't changed. We're going to argue in favor of this," Ulyukayev added.
He also noted that other proposals have been made, which is why intervals have been established. A final decision will likely be made in September.
"The tariff question is an issue that has been long under discussion. Depending on the decisions made on indexation, the size of subsidies will also be determined," Ulyukayev added.
As concerns tariffs for grid companies, he said their financial situation will be assessed, as well as the possibility for money from the National Welfare Fund (NWF) to go towards their investment programs. After this discussion, a final decision will be made.