State support of JSC “Russian railways”

Olga I Krushinskaia,Dmitriy S Artemev,Daria A Dinets,Natalia V Manchenko,D Maksimova

doi:10.1051/shsconf/202111200045

Abstract

The main sources of funds for railway investment projects in Russia are still state and regional budgets, funds from the National Welfare Fund, the net profit of Russian Railways, and pension savings from the Pension Fund of Russia. The reform of the system of the Ministry of Railways and the creation of JSC “Russian Railways”, which began in 2016, has not yet released the state budget from financing its needs, and there has been no active use of private investment. Moreover, the monopoly began to seek to shift the financing of not only the modernization and construction of tracks, but even the maintenance of existing infra-structure on the shoulders of the state and shippers. From year to year, there is an increase in the total amount of state support for Russian Railways. Part of the received state support funds in the period under review is spent inefficiently by JSC “Russian Railways”. The remaining budget funds that are not used by JSC “Russian Railways” additionally burden the economy, increasing inflation by various surcharges to tariffs, but the available budget funds are not selected in full, and billions of fines are paid for this. There are low rates of implementation of individual investment projects, overestimation of expenses for the purchase of equipment, an increase in the cost of construction, the cost of contracts for a number of objects exceeds the cost determined by state expertise, etc.

Highlights

The reform of the system of the Ministry of Railways and the creation of JSC "Russian Railways" were almost primarily justified by the prospects of attracting investment resources
In December 2016, the government of the Russian Federation for this purpose increased the authorized capital of Russian Railways by 24.98 billion rubles; as recently as in April 2017 – by another 29.78 billion rubles
The fact that the state has to invest significant funds in the Corporation to implement its investment projects for infrastructure development, we suggest analyzing the volumes and directions of state support for the period 2017–2019

Summary

Introduction

The reform of the system of the Ministry of Railways and the creation of JSC "Russian Railways" were almost primarily justified by the prospects of attracting investment resources. In December 2016, the government of the Russian Federation for this purpose increased the authorized capital of Russian Railways by 24.98 billion rubles; as recently as in April 2017 – by another 29.78 billion rubles. It turned out somewhat differently: having taken a course to become an infrastructure company, the monopoly began to seek to shift the financing of the modernization and construction of tracks, but even the maintenance of existing infrastructure to the shoulders of the state and shippers. In a global economy, building and improving supply chains improves the competitiveness of the transport system on the world market and promotes the growth of exports of transport services

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Conclusion