MinFin backs idea of not indexing monopoly tariffs in 2014 - Siluanov
STRELNA. Sept 6 (Interfax) - The Russian Finance Ministry supports proposals that tariffs for the services of the country's natural monopolies not be indexed next year, Finance Minister Anton Siluanov told the press.
"I absolutely agree with this. Besides, our proposal for reducing spending [budget spending by 5%] is associated particularly with this measure, lower tariffs, lower state-procurement prices. Correspondingly, we can talk also about less distressing pressure of budget expenditures in conditions of reduced tariffs," the minister said.
Natural monopolies' investment programs actually "could suffer in nominal terms," Siluanov said. At the same time, he said they should not be reduced in practice.
However, in conditions where "the state is tightening, the public sector is tightening, we are reviewing our budget spending and companies have to do so too," Siluanov said.
"Companies must cut spending and their costs, they must hold talks with counter-parties, raw material suppliers, input suppliers and this is right. We know there are reserves there, and think that freezing tariffs will help us to stimulate structural reforms in these companies," he said.
The Vedomosti newspaper quoted its own sources as saying that following a proposal by the Russian Economic Development Ministry, the government was thinking of abandoning plans to raise natural monopoly tariffs in 2014. Russian Prime Minister Dmitry Medvedev asked for this proposal to be assessed. A decision might be reached in September together with the federal budget. At issue are tariff for gas (Gazprom ), rail freight (Russian Railways (RZD) ), power transmission (Russian grids ) and household heating and electricity tariffs.