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10/12/2016

The indexation of tariffs for cargo transportation in 2017 is planned for 4% Tariffs for cargo transportation in the Russian Federation in 2017 will increase by 4%, subsidizing Russian Railways for these purposes is not expected, the head of the Ministry of Economic Development Alexei Ulyukayev told reporters.

"We offer 4% indexing for Russian Railways. Subsidies for Russian Railways for freight transportation are not expected. Subsidies are offered only for the suburbs," Ulyukayev told reporters.

According to the minister, these calculations are included in the forecast of the Ministry of Economic Development for 2017-2019, which the government intends to consider at a meeting on October 13. Initially, the indexation of the Russian Railways cargo tariff for 2017 was included in the forecast of the Ministry of Economic Development at the level of 4.5%. A representative of the press service of the Ministry of Transport of the Russian Federation on Monday reminded RIA Novosti that the Ministry generally supports the proposal of Russian Railways on differentiated indexation of the tariff by type of cargo in 2017. This issue, the interlocutor added, should be carefully studied and worked out by all involved structures.

The President of Russian Railways Oleg Belozerov reported earlier in September at a meeting with journalists that the introduction of differentiated indexation of tariffs by classes or types of cargo in 2017 is being discussed. At that time, he did not name the upper and lower limits, as well as the total size of the Russian Railways assumption on tariff indexing.

However, he noted that the overall growth of the cargo tariff should be lower than inflation. The Kommersant newspaper, citing a source, wrote that Russian Railways proposed a tariff increase of 6.8% in 2017 for all cargoes or the introduction of differentiated indexing depending on the cargo class.

The cost of transporting goods by rail consists of infrastructure (including the locomotive built into it) and carriage components. The carriage part is the part that operators receive for providing rolling stock to the shipper, the infrastructure part is the part of Russian Railways, which is established by the Federal Antimonopoly Service of the Russian Federation.