Russian Railways proposes indexation of freight tariffs based on industrial inflation

General Director of Russian Railways Oleg Belozerov proposes to index freight tariffs depending on industrial inflation, and not consumer inflation, as now. He clarified that the index “needs to be worked out and discussed at all levels” so that “there is a certain form of consensus.”

“In addition, the tariff system needs to be adjusted. So this will happen no earlier than January 1, 2025, perhaps even January 1, 2026,” Mr. Belozerov said in an interview with RIA Novosti about the likely timing of the introduction of such tariffs. He noted that all changes “must be clear so that they can be prepared in advance.”

According to him, if the difference between industrial, production and consumer inflation is insignificant, then we can agree with the previous formula. But if in certain areas “sharp deviations begin,” then we must “remain at parity,” he explained. “Based on this, we are proposing a price parity index that will balance this situation,” added Oleg Belozerov.

Since 2019, Russian Railways freight tariffs are indexed according to the principle of consumer inflation minus 0.1 percentage points. At the same time, back in 2018, Russian Railways proposed switching to indexation based on industrial rather than consumer inflation. As Kommersant learned, freight tariffs of Russian Railways are being prepared to be indexed by 10.75% in 2024. This figure included two additional percent of the target allowance for infrastructure overhauls and a new type of allowance for transport security.

Details – in the material “Kommersant” “The railroad will take the tithe”.

Laura Keffer