24 Jul 2009 16:58

Russian Railways to lose 4.5 bln rubles if ferrous scrap metal tariff reduced

MOSCOW. July 24 (Interfax) - Russian Railways (RZD) will lose some 4.5 billion rubles if the tariff on ferrous scrap metals is lowered, RZD President Vladimir Yakunin said at a meeting on the metals industry in Magnitogorsk on Friday.

Yakunin was commenting on a proposal by an industry representative at the meeting on lowering transportation costs for metals producers by reclassifying ferrous scrap metals from the third tariff class to the first tariff class. The third tariff class is for the most expensive goods, while the first tariff class is used for transporting cheaper products such as sand and crushed stone.

"If the proposal mentioned is passed, RZD revenue will decline by 4.5 billion rubles in 2009 prices," Yakunin said. Scrap metal accounts for 7.3% of the raw materials the company transports.

Prime Minister Vladimir Putin, who chaired the meeting, issued instructions to give this issue more attention.