OREANDA-NEWS. May 08, 2008. The Session of Government Commission on Industry, Technology and Transport Development headed by S. Ivanov, Deputy Prime Minister of RF was held. The participants discussed the question "Оf top measures of state support of federal postal service development", reported the press-centre of Russian Post.

In his report L. Reiman, Minister for Communications and Information Technologies of RF estimated present financial and technology situation at Russian Post that has hard times. Russian economy rapid growth dictates its demands for quality and list of services.

For the last two years volume of post items increased by 27%, volume of money orders increased by 68%, that confirms popularity of postal services in the country. However, given the tariff rates have not been indexed since 2006 and they are kept at the level lower than net cost, volume growth represents another non-profitable aspect for the enterprise.

Resulted, Russian Post losses made up 2,5 bln rub. in 2006, 3,9 bln rub in 2007. It followed by reduction of the enterprise’s net assets, growth of liabilities and impossibility to develop infrastructure and wage growth.

Thus, post fixes high labor fluctuations. Over half of post offices should be repaired, they don’t have normal conditions to serve customers, 60% of car fleet is exhausted and should be renewed. All the facts influence quality service and growth of people complaints.

The Minister noted insufficiently efficient tariff rates setting for postal services as the main reason of losses. Presently, none of the services rendered by tariffs is profitable, especially registered correspondence that tariff rates are twice lower actual expenses. To mention, state budget structures as Pension Fund of RF, law and tax agencies represent over 87% of total number use the service.

Periodicals delivery is also non-profitable for post. Despite of subscription is not regulated service, Russian Post follows recommends of government authorities and doesn’t raise tariff rates for press delivery. As resulted, the enterprise didn’t get 5,7 bln rub. for the recent two years. Granting social services throughout the country, Russian Post is the only company with network in remote and difficult-to-access settlements. Post has losses while granting services in rural settlements, let alone areas with low population and roadless ones of the Far North, the Far East. As a result, 31 thousand of 40 thousand post offices have negative profitability. However, if close them millions of people have no outside communication.

Due to this Russian Post had to take credit liabilities to repay running expenses. For the former year volume of credit debt grew to 12 bln rub., debts on lease agreement concluded before made up to 4 bln rub.

To find the solution of the situation the Ministry of Communications and Information Technologies of RF and FSUE Russian Post developed the program aimed at making the enterprise modern information, logistic and financial operator.

A. I. Kazmin, General Director FSUE Russian Post spoke concerning the problem within the framework of the Session.

The modernization program requires financing infrastructure units and measures on development of all elements and technologic process stages from federal budget amounted 209 bln rub. in the near 3 years.

The enterprise plans to establish automated sorting centers, renew car fleet and postal carriages, equip post offices with modern facilities within the framework of the modernization.

The participants supported the solutions of the Ministry of Communications and Information Technologies of RF and Russian Post. Moreover, the Ministry of Communications and Information Technologies of RF, Ministry of Finance and the Ministry of Economic Development are to speed up development of the complex of measures on postal service infrastructure modernization and include in the RF Government till July 1, 2008.

Above-mentioned Federal Ministries prepare offers on state support of postal services given the state tariff rates regulation, delivery of periodicals to the areas of the Far North, the Far East and rural settlements till September, 2008. Moreover, they are to prepare offers on Russian Post compensation of losses got before and redeem credits on financing of already implementing construction projects of sorting centers in Moscow and Saint Petersburg.

The Ministry of Communications and Information Technologies of RF will also prepare offers on change of legal organizational form of FSUE Russian Post.

The Federal Tariff Service is to execute RF Government Decree № 637 of 24 October 2005. It should equate tariff rates for postal service to the level compensating economically sound expenses and standard profit reimbursement. Within the framework of the Session the participants supported the initiate of the Ministry of Communications and Information Technologies of RF concerning the solution of the problem of fixing special economically sound tariff rates for ordered correspondence, budget organizations first of all.