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Russian government takes decision to freeze natural monopolies tariffs in 2014

The forecasted inflation rate is 4-5% a year

Photo ITAR-TASS/Alexander Astafyev

Photo ITAR-TASS/Alexander Astafyev

MOSCOW, September 19 (Itar-Tass) - The Russian government has taken a decision to freeze tariffs on services of natural monopolies in 2014, Russian Prime Minister Dmitry Medvedev said on Thursday.

“It will make it possible to restrain the growth of prices for housing and utilities services,” he said at a government meeting. “It is very important for people, so I hope it will produce a visible anti-inflation effect.”

He also said that the forecasted inflation rate is four to five percent a year. “It is the lowest level in recent years,” he noted.

Benefits for population and enterprises

The benefit for the population from freezing of tariffs in 2014 will reach 40 billion rubles, for enterprises - 130 billion rubles, Russian Economic Development Minister Alexei Ulyukayev said at the “government hour” in the State Duma lower house of parliament. He also noted that the agreed level of Russian Railways’ (RZD) shortfall in income as a result of freezing of tariffs of natural monopolies in 2014 would amount to 77 billion rubles.

Finance Ministry supports tariff freezing

Russia’s Finance Ministry supports refusal from indexation of growth of natural monopolies’ tariffs in 2014, Minister Anton Siluanov told reporters September 6.

“I fully agree with it,” he said. “I would like to stress - our suggestion on cutting expenses covers, among others, this measure: the lower the tariffs, the lower are prices for state purchases. Thus, we may speak about less painful control of budget expenses under conditions of lower tariffs.”

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