Russian regions will not subsidize suburban transport

Suburban transportation in the Russia Federation needs subsidies of around RUB 16 Billion (EUR 414 Million) in 2012, but regions prepared budgets of just RUB 6.6 Billion (EUR 171 Million). Some regions envisage compensations of only 20% of the transport companies’ needs. This lack could unbalance the budgets of companies which might not reach the break-even point included in the structural reform programme on railway transportation. According to analysts, railway transport subsidies are 50% below those of other transport modes. 30% of the subsidies will return to budgets in the form of taxes.

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