Mishustin signs decree on indexation of railroad cargo rates starting on Dec 1, factoring in surcharges they will grow by 10.75%

MOSCOW. Oct 23 (Interfax) - Railway cargo rates in Russia will be indexed as of December 1, 2023, in line with a decree signed by Prime Minister Mikhail Mishustin.

The baseline indexation will total 7.6%, and rates will increase by 10.75% when factoring in surcharges related to overhaul of infrastructure and transportation security.

There will be no additional increase in rates in January 2024.

Moreover, the non-application of the reduction ratios (0.4 and 0.895) when determining fees for export transportation of hard coal by railway will be extended from January 1, 2024 to December 31, 2024.

The Economic Development Ministry at the end of September reported in the forecast for 2024-2026 that cargo railway tariffs could be indexed by 10.75% as of December 1, 2023, taking into account additional targeted surcharges of 1% for ensuring transport security and 2% for major infrastructure overhaul.

As reported, railway cargo tariffs in Russia rose by 8% as of January 1, 2023. Indexation of cargo tariffs is expected to be 7.1% as of January 1 for 2024 and 4.6% for 2025.