Interaction with public authorities

Meeting of the population’s needs for railway transportation in the Russian Federation is carried out exclusively by the Company’s resources.

Currently JSC FPC is the major long-distance railway passenger carrier.

By Decree No.190-t of the Federal Tariff Service dated May 27, 2010, FPC was included into the register of the natural monopoly holders on transport in the sector of railway transportation services.

The Company’s activities in the passenger transport service sector are subject to state regulation, according to the Federal Law No.147-FZ dated August 17, 1995 (in the revision dated December 30, 2012) On Natural Monopoly Holders (with the amendments, which entered into force on January 27, 2013).

Tariffs for long-distance passenger transportation in open and general carriages are regulated by the state represented by The Federal Tariff Service of the Russian Federation.

In order to guarantee affordability of these transportation services the state sets the tariff below the economically feasible level, and these services are unprofitable for the JSC FPC.

To compensate for loss of income resulting from the state regulation of tariffs for long-distance transportation of passengers in open and general carriages the Russian Federation Government issued Decree No.207 dated April 07, 2007, which stipulates the rules for granting subsidies to railway transport organisations.

In 2014, JSC FPC developed conceptual basis for creation and implementation of a new state support system for long-distance passenger railway transportation services within the public passenger transport contract.

The results were sent to the Russian Federation Ministry of Transport to assess the possibility of using them as a basis for informed decision-making mechanism for implementation of a long-term subsidization of long-distance passenger transportation mechanism.

In 2015, JSC FPC took part in the review of the draft Concept of Long-term Inter-regional Passenger Transportation subsidization, developed by the RF Ministry of Economic Development.

The company is also actively engaged with the regional authorities: in 2014 contracts On Provision of Transport Services were signed with the Republic of Ingushetia, Komi Republic, Kabardino-Balkar Republic and the Republic of Karelia, which provide for compensation of the carrier’s decreased income.

State support