The government has proposed a targeted way to subsidize the OTEKO terminal by Michel Litvak in Taman, in order to increase through it the handling of coal for export. Subsidies to reduce the credit load of the terminal will allow to reduce the rate of transshipment of up to $8 per ton and to increase shipments by 25 million tons per year, according to a draft of the report to the President of the Russian Federation prepared by the Ministry of energy. In addition, it is proposed to increase the discount to railway tariff to 42.7% from the current 12.8 percent, and freeze the fares “Rosmorport”.State support for the port project Taman ‘ group of companies OTEKO Michel Litvak will help to increase the export of coal, according to the draft report of the government of Russian President Vladimir Putin. The document prepared after a meeting on development of transport on 7 may. Responsible for making proposals by June 15, on creation of the mechanism of stimulation of the transport of coal for export through the ports of the South and the North-West is Prime Minister Mikhail Mishustin.Thus, it is proposed to subsidise the interest rate and extend loans for the project OTEKO. As a result, as expected, the rate of transfer of coal will be reduced from $14 to $8 per ton, to the level of terminals in Ust-Luga and Murmansk. This will further increase the volume of coal exports to 25 million tons, generate additional revenues coal companies, the Railways and rail operators to increase the flow of payments to the Russian budget, says the document.Because the coal belongs to the first tariff class (the cheapest), now Russian Railways has no right to give it a discount of over 12.8%. However, the report offered “in the midst of the worst economic and market conditions” to bring together the conditions of the tariff corridor to export coal supply with the conditions applicable for the more expensive transportation (of goods second and third classes), increasing the maximum possible discount to 42.7%. Thus, Russian Railways has repeatedly questioned the effectiveness of existing incentives for coal, and the top managers of the company pointed out that now the transport of coal for the monopoly is unprofitable.In Russian Railways, “Kommersant” reported that the relevant proposals are not seen. Currently, the company has provided tariff preferences for the transportation of coal by alternative directions at the maximum level, both from the point of view of installed control rules, and from the point of view of economic expediency, entered into a monopoly.“B” has sent requests to the Ministry of transport and FAS. The Ministry of energy, “Kommersant” has not replied.Today the price of coal on the European market is $53 per ton, says Maxim Hudalov of an ACRE. The cost of loading $14 per ton rail rate to the port of $25-28 leave coal miners $11-15 per ton is less than the cost of production of coal by underground methods on most�� Russian mines. Maxim Hudalov notes that even the reduced cost of transshipment of up to $8 may not be sufficient in light of the volatility of coal prices in the European region and risks a complete failure of the European countries (except Poland) from coal generation. In the draft proposals are reminded that the export of coal in 2019 amounted to 221 million tons, of which 67.5 million tons through the ports of the North-West and South. In January—may exports in this area fell by 0.7 million tonnes to 27.2 million tonnes. To save transportation has adopted a number of measures: the Railways have provided a discount of 12.8%, and there was an additional agreement between the monopoly and the Kemerovo region, indicating the forecast loading of coal exports from the Kuzbass in 2020 in the Eastern and Western directions.Calls to increase the discount of the Western and southern areas to align the tariffs with the supercharged sound of the East with the spring. In March, the FAS offered to give the Railways the opportunity to provide discounts of up to 99% (see “Kommersant” on March 24), later the figure was adjusted to 16-55% (see Kommersant dated 29 April). Against the proposals were made by Russian Railways, referring to the occurrence of unreasonable expectations on the market (see “Kommersant” on April 17). In late may about the need to increase discounts for transportation of export coal to the ports of the North-West up to 50%, said the state Council working group on energy (see “Kommersant” on 26 may). Then it is headed by the Governor of Kuzbass Sergey Zevelev noted that the current discounts on unprofitable areas is not enough, and pointed to losses of companies due to falling coal prices. Mr. Zevelev stressed that without state support the situation is not corrected. In turn, in early July, Deputy head, Russian Railways Alexey Shilo noted that the discounts on the transportation of coal to the ports of the South contribute to the increase in loading, while in the North-West direction, similar action ineffective. Top Manager did not rule out the abolition of discounts, if volumes continue to fall.In an interview with “Kommersant” on August 4, the first Deputy head of OAO RZD Vadim Mikhailov said that because of lower coal prices, the volume of traffic on the North-West fell by 26%, South — 7.2% with growth of traffic to the East — 3%.Anastasia Vedeneeva, Eugene Zainullin
