Russian govt could increase support for passenger rail services - Putin
MOSCOW. Dec 20 (Interfax) - The Russian government is looking for an opportunity to long-distance rail services by Russian Railways (RZD) , Russian President Vladimir Putin told a press conference.
"In my opinion, there is still a chance to increase support for RZD. And in those cases where there is no other mode of transport, then of course those restrictions [canceling regular services] are out of the question," Putin said, when asked about a decision by RZD subsidiary Federal Passenger Company (FPC) to cancel the Tynda - Komsomolsk and Tynda - Neryungri services.
The government will issue 40 billion rubles in compensation for regulating rail fares in 2013 and 25 billion of this will go to the commuter segment. PC needs the remaining 15 billion rubles and it thinks the state should issue more than 30 billion rubles in compensation. Government officials have advised RZD to raise the efficiency of passenger services, and the Federal Tariffs Service has put economy fares up 20% rather than 10% from January 1.
"There's nothing good in this, we're just boosting unjustified federal budget spending," Putin said.
RZD Vice President Mikhail Akulov has told Interfax that some two dozen long-distance train services would be axed in the second half of January. RZD has said the need to reduce operating costs is behind this.