21 Jan 2011 17:42

RZD says 11.7% freight tariff hike, 80 bln ruble subsidies needed in 2012

MOSCOW. Jan 21 (Interfax) - Russian Railways (RZD) thinks an 11.7% increase in freight charges and 80 billion rubles subsidies are needed in 2012, an industry source told reporters.

"The 7.4% tariff growth [proposed by the Russian Economic Development Ministry] isn't enough to cover operating costs. At least 11.7% growth is needed in 2012, and the difference [under-funding compared with the economically justified tariff growth] will be 80 billion rubles in order to fund the company's investment program," the source said.

The 80 billion rubles might nit necessarily have to be allocated as a subsidy but could also be raised by issuing infrastructure bonds, the source said.