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Mar 26, 2016

Russian Railways ready to involve private business in developing new freight price list

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Oleg Belozerov, President of Russian Railways, has held a meeting with shippers and rolling stock operators to discuss cooperation on transport activities.

The meeting took place on 25 March 2016 and was the second to be held this year with players from the transportation market.

Following the first meeting, joint working groups were set up to address operational issues in railway transport. The meeting stressed that in the two months since then, a constructive dialogue was established and agreement reached on a number of issues relating to freight rates and transport technology and organisation.

In turn, the President of Russian Railways informed the meeting's participants about the work the Company was conducting on the concept of a new price list for freight transportation.

According to Belozerov, changes in rail operation should reflect the principles underpinning its formation in terms of prices, rather than in the form of individual amendments and supplements. Russian Railways has its own views on which of these should be retained, and which need to be adjusted based on the transport conditions prevailing in the market economy.

"I would like business representatives to participate in developing the concept for the price list and give their expert opinion. I am sure that together we will draw up a document which will be beneficial and make operations convenient for the railways on the one hand and the shippers and operators on the other," said Oleg Belozerov.

Belozerov also said that the Company had begun working towards achieving balanced financial activity while at the same time reducing the tariff burden on the economy. At the moment, the freight tariff indexation is in fact almost two times lower than the target value of 7.5% set by the Federal Antimonopoly Service in 2016.

In general, this year Russian Railways plans to reduce the level of the tariff burden on shippers to 45.5 billion roubles.

"We are in effect lending this amount to our business partners because we understand that the economic situation is not easy. We want to support our producers and fight for the market together with them," said Oleg Belozerov.

The Company President also assured the meeting that the joint working groups would continue their work to address the railway's operational issues.

Similar meetings will be held on a regular basis.

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