Deputy Minister of Economic Development and Trade Andrey Klepach stated clearly that his ministry “is not the initiator of the reconsideration of prices."
Photo: Ilya Pitalev
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Cabinet Lets Loose on Last Day
The cabinet of Prime Minister Viktor Zubkov refused to consider the socio-economic development of the Russian Federation through 2020 at its last meeting and instead approved a price increase for state monopolies that will almost double electricity, railway and natural gas prices between 2009 and 2011. The effects of that decision on inflation and industrial production levels will be the problem of Zubkov's successor as prime minister, Vladimir Putin. Those effects will be discussed at the first meeting of the new government on May 15.
Deputy Minister of Economic Development and Trade Andrey Klepach stated clearly that his ministry “is not the initiator of the reconsideration of prices… Gazprom, RAO UES of Russia and Russian Railways made the proposal for the price hike, and they were supported by the Ministry of Industry and Energy, the Transportation Ministry and the Federal Tariffs Service.” Deputy Prime Minister Alexey Kudrin unexpectedly lent his support as well.
Minister of Economic Development and Trade Elvira Nabiullina read a report at the session that suggested raising electricity prices to the public and in the Russian Far East and Kaliningrad Region by 25 percent in 2009, in place of the 15-percent price hike proposed at the end of last year, and raising prices by 25 percent again in 2010 and 2011. In 2011, 77 percent of industry will be transferred to the unregulated electricity market, where prices may be lower.
Russian Railways, in the meantime, got nearly twice the rate hike that had been planned for it last year. Now, instead of 9 percent on cargo in 2009, it will receive 17.1 percent more, then 9.7 percent more in 2010 and 11 percent more in 2011. Benefits will be available for goods in which the price of transportation makes up a large share of their cost. The 50-percent rate reduction for grain will be extended. Gazprom will receive a 25-percent hike on prices to the public in 2009, followed by 30 percent in 2010 and 40 percent in 2011, after which a new pricing model will come into force.
www.kommersant.com
All the Article in Russian as of May 06, 2008
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