Russian Railways to raise prices by 10%

UrBC, Moscow, September 30, 2015. Russian Minister for Economic Development Alexei Ulyukayev said railway fares might go up by 10% in the year 2016, Kommersant reports.

‘I see a 10% price increase as possible, given that no subsidies will be allocated from the national budget to freight forwarders,’ he said.

According to the Minister, the government is also considering raising the mineral replacement tax for metallurgical enterprises. Besides, it is possible that Bank of Russia’s profits prove an extra source of budgetary income.

‘In my view, the Central Bank’s profits might be at play. There is a general understanding that a greater budget inflow could result from a more gradual decrease in oil export duties. We need to go from 42% down to 36%, but we could quite painlessly stop at 40% or 39%. This is something everyone agrees about,’ the official said.

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