State support for Russian Railways to increase in 2011.

By bne IntelliNews August 4, 2010
State-run railroad monopoly Russian Railways (RZD) is going to receive state support of RUB 75bn (USD 2.5bn) in 2011, deputy EconMin Andrei Klepach announced. Notably, this makes a 50% increase vs. previously planned RUB 50bn. RUB 20bn out of that are compensations for un-indexation of the cargo transportation tariffs, another RUB 35bn are going to be granted to RZD passenger carrying subsidiary and RUB 25bn to regional branches for subsidizing transportation in suburban areas. This year RZD is going to receive RUB 50bn of state support. As recently argued by head of RZD Vladimir Yakunin, RZD might need another RUB 400bn in state support for the period of 2010-2015. The funds would be necessary for realizing the investment program for the coming 6 years. Investment program of RZD for 2010 stands at RUB 270.5bn, main priorities being development and renewal of infrastructure on main transit and export-oriented directions. Russian Railways is 100% owned by the government.

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