September 7, 2010

Russian Railways calls for subsidies to go to farmers

Subsidies for railway grain transportation should be given to farmers, not to transport operators, said Russian Railways (RZhD) president Vladimir Yakunin.

"Our position is that we should not subsidise the railways, but the grain producers, so that they can deliver it to the market," Yakunin told an RZhD directors' meeting, adding that the government is now discussing the issue.

"Proposals to reduce tariffs by 50% have appeared. I should remind you that special tariffs for the Far Eastern region are set to ensure the competitiveness of Russian grain on foreign markets. But since exports are banned now, what's the aim of doing so?" he said.