Other expenses and income

The financial result from other income and expenditure amounted to RUB 20.5 billion.

The main proceeds as part of FPC other income are free subsidies from the federal budget to reimburse a shortfall in income caused by government regulation of tariffs for long-haul transportation in open and general carriages.

The subsidies from the federal budget in 2014 totalled RUB 23.3 billion.

Furthermore, the same year the Company received RUB 0.15 billion from regional budgets to compensate for its shortfall in income.

A significant contribution to other budgeted income and expenses was interest on bank deposits and interest accrued on balance in settlement accounts. In 2014, efficient liquidity management against the backdrop of declining revenues from transportation brought RUB 0.5 billion (67% year-on-year).

FX rates changes during FX settlements (USD, EUR, and CHF) resulted in FX gain of RUB 0.3 billion recorded based on the 2014 performance (over 7-fold growth year-on-year).

The main item in other expenses is cash-in-transit and cash management costs accounting for 24% of the total expenses. Expenses based on the operations in the reporting period amounted to RUB 1.6 billion (80% year-on-year).

Furthermore, an interest of RUB 1.0 billion was accrued based on the 2014 results due to a growing loan portfolio (150% year-on-year).

FX loss/gain related expenses in foreign currency and in Russian rubles under currency agreements totalled RUB 0.4 billion (474% growth vs 2013).