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. Last Updated: 07/27/2016

RZD to Raise Tariffs on Train Freights

The government will partly approve a request by railway monopoly Russian Railways, or RZD, for higher fees from 2008 to 2010 as the firm needs funds to repair its network and raise wages, a government official said Monday.

"[Freight charges] will rise compared with what we had in our previous forecast," Gennady Kuranov, deputy head of macroeconomic planning department at the Economic Development and Trade Ministry, told a news conference.

The government has been capping tariffs of its natural monopolies in the past years to keep inflation under control, and Kuranov said the new rise should not hit the Cabinet's targets for 2008-2010.

The company has asked to increase fees by 8 percent per year from 2008 to 2010, while the government wanted it to cap rises at 7 percent next year and at 6.8 and 6.5 percent in 2009 and 2010.

Kuranov did not say by how much RZD would be allowed to raise its tariffs, saying his ministry was still studying the firm's calculations.

RZD, the world's second-largest railway system, ships millions of tons of Russian oil, metals and grain, whose producers watch the tariffs closely as they have a broad impact on their profits.