The Government will continue to assist Russian Railways (RZhD), Prime Minister Vladimir Putin promised during a meeting in Sochi. Inspired by these words, Vladimir Yakunin, the head of RZhD, immediately asked the prime minister to fork over federal subsidies for the construction of transport facilities for the Olympic Games, and, for good measure, to increase the company's investment programme by at least 400 billion roubles.
The government put the total RZhD investment programme in 2010 at 270.5 billion roubles. Support from the Federal Budget will increase marginally to 140 billion roubles (last year the sum was 10 billion less – Izvestia). "The state will still underwrite more than 50% of the cost of modernization and new construction," Mr Putin explained. "This is in part compensation for the smaller rise in cargo tariffs, amounting to 50 billion roubles; for the cost of carrying passengers in long-distance trains in second- and third-class carriages, amounting to 27.8 billion roubles; and the cost of creating the transport infrastructure in Sochi, amounting to 60 billion roubles this year."
According to the plan, a railway and highway link is to be built in Sochi between Adler and the ski resort of Alpika Service, in addition to a new branch from Adler to the Sochi airport and 30.3 km of new railway track from Tuapse to Adler.
"All the problems concerning the Adler-Alpika-Service project have been solved," Mr Yakunin reported, before admitting that "other projects were supposed to be financed out of the proceeds from the increase of cargo carriage tariffs by 1%. Because of falling amounts of cargo, the company of course cannot raise the necessary sum. These projects may end up running 7 billion roubles short of funds. We understand that the budget has been finalized..."
"The chart here says 5.4 billion roubles," Mr Putin interrupted Mr Yakunin, who was demonstrating slides with his calculations. "Your appetites are growing very fast."
"Naturally, this is only an estimate... but being aware of the importance of the task of preparing for the Olympic Games set by the government, we will complete all the projects initiated on schedule."
"I am sorry, but I am a bit confused: you say that 'the deficit may reach 7 billion roubles, but we will do it all the same.' At whose expense? At the expense of other regions?" the Prime Minister continued to press Mr Yakunin.
"Miracles do not happen," Mr Yakunin conceded. "So we will have to cut our own costs. But if the government could compensate the deficit at least in the amount of 5.4 billion roubles, we could raise about 2 billion simply by saving money."
On the whole, RZhD needs a great deal more funding. Vladimir Yakunin said that an extra 400 billion roubles was needed to renew the company's dropping stock over the next five years. The Prime Minister let these words pass without comment. The final decision was announced after the meeting by Transport Minister Igor Levitin: RZhD will not get any extra money this year.
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The length of railway track
Russia has more than 87,000 km of railways. But although it has the second largest network of railways in the world (after the US), there are still no rail links to many regions, especially in the northern and eastern parts of the country. To solve that problem, in 2008 the government approved the Strategy of the Development of Railway Transport in the RF until 2030. Under that document, 5,100 km of railway track are to be built in the first stage and between 10,800 and 15,500 km in the second stage. That would bring the length of Russian railways to between 102,900 (+18%) and 107,600 (+24%) km by 2030.
Anastasia Savinykh
