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Feb 13, 2016

Russian Railways has optimised tariff management and transport and logistics units

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In order to improve the management structure and improve the efficiency of the tariff policy, Oleg Belozerov, President of Russian Railways, has ordered the Company to abolish the Department of Tariff Policy Implementation on Rail Freight, the Department of Management Accounting and Long-Term Tariff Policy Methodology and the Department of Management of the Transport and Logistics Business Unit.

The functions of the abolished Department of Management of the Transport and Logistics Business Unit, including a flexible tariff policy and the preparation of proposals for developing new and improving existing transit transportation tariffs, have been transferred to the Centre for Corporate Transport Service, a branch of Russian Railways.

The newly created Department of Tariff Methodology, Expertise, Analysis and Application of Tariffs in Freight and Passenger Transport has been assigned the tasks of setting and implementing the Company's freight and passenger tariff policies, including:

  • the development of new and the improvement of existing freight and passenger tariff guidelines, including tariffs for the provision of infrastructure on long-distance and suburban passenger transport;
  • the development and improvement of the methodology for long-term tariff regulation and the methodology for justifying changes to tariff levels within the price limits set by Russia's federal executive bodies on the regulation of natural monopolies;
  • preparing proposals on amendments to normative legal acts of the Russian Federation and normative documents of Russian Railways;
  • making assessments of the cost-effectiveness and expert reports on accepted tariff decisions, including for compliance with the current regulatory framework.

In addition, the Company has established a Department of Management Accounting and Reporting tasked with defining corporate policy and standards, the legal and methodological support of separate income and expenditure accounting according to the activities of Russian Railways and the management accounting and the formation of the corresponding financial statements of the Company and its subsidiaries.

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