Exporters do not want to cover the budget deficit of the Railways

Exporters do not want to cover the budget deficit of the Railways


The government is discussing the possibility to keep premium of 13.4% to the railway tariff for 2017

Photo: TASS/Vladimir Zinin

Russian companies-exporters want to OJSC “Russian Railways” (RZD) abolished the export surcharge on rail transportation in 2017. In the opinion of metallurgists, miners and fertiliser producers, the railway monopoly solves the problems with the budget deficit at their expense.

Currently, Russian Railways is considering the question of implementation of measures of tariff regulation, which is expected to compensate for the 80 billion rubles of the total of projected loss for the year 2017 in the amount of 142,4 billion rubles, follows from the letter of the head of Russian Railways Oleg Belozerov, the head of FAS Igor Artemyev (“News”).

For the first half of 2016, the volume of export shipments by rail amounted to 212,6 million tonnes, in total transportation volume is 32.9%. The amount of freight charges amounted to 197,2 billion (41,9% of all the revenue earnings of Railways from freight transportation), the letter says.

In January 2015, the government allowed RZD to establish an export allowance for a period not exceeding two years for the financing bottlenecks and increase throughput of the railway infrastructure, recalled “news” the representative of the company “RUSAL”. However, in his opinion, the money the Railways used to cover the budget deficit — thus the measure was aimed at increasing the profitability of the Railways at the expense of exporters.

Collected from allowance money was spent without investing in the infrastructure, so to renew them makes no sense, says the source “Izvestia” in the coal industry. In his view, Railways can not save money and looking for options to Supplement the budget. Ministry of economic development has agreed with the government that indexation will amount to only 4% in 2017. At the same time there is talk of revising the tariff, export allowances and point changes. If you add it all up, it turns out that the increase of railway tariff with the wagon component in 2015 is about 40%.

— The implementation of Russian Railways will negatively affect the foreign economic activity of metallurgists, which is currently experiencing unprecedented pressure. The total increase in railway tariffs in 2015 and 2016 have already made up 19.9% due to indexation. With the growth of the wagon component of the total increase in rail fare, so in just two years was 37.9% due to the ongoing global crisis in the basic industries, — have informed “news” the representative of the partnership “Russian steel”, uniting the largest steel makers of the country.

Russian Association of fertilizer producers (brine) in October has already sent Prime Minister Dmitry Medvedev consolidated the position of the industry. According to brine, if the situation with the tariffs for rail transportation is not corrected, the competitiveness of Russian producers of fertilizers on foreign markets will be lost.

— The share of rail transport component in the price of fertilizers as a result of the raising factor to the tariff on the export rail transportation (13.4 percent) from January 2015 to September 2016 jumped 2-3 times and has already reached in many areas 20-40% in the price of products, — have informed in the brine.

In the Railways agree to cancel your premium for exporters subject to indexation of the tariff for all shippers 2.8%, told “Izvestia” in the Ministry of economic development. In this case, the Agency opposes this decision, as in this case, the export premium will be passed on to all transportation, including domestic.

Major companies-shippers at the meeting of the Council on the activities of Russian Railways in early October, supported the General indexation of tariffs with no hidden and extra charges, writes TASS.

RZD plans to keep in 2017 the right to apply surcharges and discounts to the base rate (the maximum level of this allowance is 13.4%, discounts — 25%). The state monopoly became eligible in 2013 and immediately established an allowance of 13.4% on the export of oil, oil products and diesel fuel. In 2015 because of the ruble devaluation and export growth have been introduced allowance for the remaining exporters. Later for miners and metallurgists it was canceled while maintaining the volume of transported goods. However, in the beginning of October 2016 in the Railways has decided to return the premium for the coal — on October 23, they would have to pay for it.

The right to change the tariffs within the tariff corridor, including at the expense of raising factors for the transportation of goods for export provided in 2014 and further to 7.1 billion rubles, in 2015 — 23.4 billion rubles. Funds were used to balance the current activities of the company, have informed “news” the representative of Russian Railways.

— Currently, Russian Railways is actively pursuing its right of self-change in the level of tariffs for services of railway transport for the carriage of goods within the price limits set by the Federal Executive authorities. The tariff corridor as an implementation of a flexible tariff policy in railway transport serves the purpose of attraction of additional volumes of freight onto rail and improve the efficiency of the holding, — said the representative of RZD.

Freight rates have grown quite rapidly: in 2015, 10% in 2016 and by another 9%. Now the government is discussing the possibility of a rate increase by 4% in 2017. The decision on indexation of tariffs comes into force after the order of the Federal Antimonopoly service as the main regulator.

According to General Director of the research Institute of railway transport Paul Ivankina, export allowance is valid until the end of January 2017 and, most likely, the Railways will take all possible efforts for its extension.

— This decision is made by the management Board of Russian Railways with the notice of the regulator. This bonus affects all exporters. The instability of international markets the growth rate can lead to a reduction in export shipments using Railways, noted Ivankin.

According to him, the funds received from the export allowance, the Railways in violation of the rules directed on current needs. Although in accordance with the regulations of this source is to Fund work on debottlenecking of infrastructure, said the expert.

— Unfortunately, not all companies have the opportunity to leave with the railroad. This forces them to ask for discounts or simply search for a compromise with the railroad. The owners are not able to use all the tools necessary to defend their interests, if they will use these tools today, tomorrow RZD agree on new applications, noted Ivankin.

The Deputy Director of analytical Department of “Alpari” Anna Kokoreva believes that the tariff increase will impact on heavy industry, primarily metallurgy, mining industry and refinery, partially on farmers.

Accordingly, manufacturers will have to lay the growth rates in the selling price, which means that it will grow. Thus, the domestic products will lose attractiveness in foreign markets because of cost. This was a blow to competitiveness. In the end we can get a reduction in exports in General, — concluded the expert.