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Sep 17, 2015

Belozerov briefs President Vladimir Putin on the Company's work in 2015

Oleg Belozerov, President of Russian Railways, met with Russian President Vladimir Putin on 16 September 2015 and informed him about the Company's performance during January-August 2015.

Belozerov told the Russian President that the decline in industrial production and crisis trends in the economy had exerted a definite influence on the Company. Freight turnover in the 8 months between January-August fell slightly, by 0.4%, while passenger traffic decreased by 7.4% due a drop in international passenger traffic of up to 40%.

However, Belozerov noted that passenger traffic to summer holiday destinations had increased. Passenger numbers to Adler and Sochi were up by 21% and to Crimea by 12%. Daily passenger inter-regional express trains were also enjoying growing popularity, with demand this year up by 35%. A new service was launched on the Moscow - Nizhny Novgorod route using Strizh trains. Over 300,000 people have already used the service.

"As you ordered previously, we have also been monitoring the situation regarding suburban passenger services in particular. Suburban commuter traffic is stable and under control, and we are constantly working with the regions. Together with the Ministry of Transport of the Russian Federation, we are developing integrated transport plans for the next year in order to understand clearly what modes of transport we will use to provide for the population's mobility," said the Company head.

Speaking on combating the crisis, Belozerov said that Company revenues in January-August had increased by 8.7% to 1 trillion roubles. Costs, however, risen by just 7.3%, which was 2 times less than the inflation rate over the same period, while the Company's productivity had jumped by more than 5%.

"The Company's investment budget in 2015 amounts to 427 billion roubles and our performance indicator is good - we completed 101% in the first 8 months and by the end of the year we will have implemented almost all the entire investment programme on time," said Oleg Belozerov.

Speaking about the implementation of major infrastructure projects, Belozerov said that as part of the modernisation of the railways in Russia's Far East, 11 objects had been commissioned in 2014, while at the moment, it was planned to commission a further 7 major projects: two junctions and 5 stations. Work is proceeding in accordance with the approved schedule on the construction of infrastructure on the approaches to Russia's ports in the north-west and in the Black Sea-Sea of Azov region. In December 2015, the Company plans to launch test traffic on the Small Moscow Railway Ring, which is due to be commissioned in August and September 2016.

Russian Railways is also continuing to develop the project documentation for the Moscow - Kazan high-speed line with a joint Russian-Chinese consortium. At the end of 2015, the Company expects to submit the final version of the financial model based on risk-sharing financing for the project.

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