RusEnergy

RBC, 15.06.2005, Moscow 19:51:46.The rate of growth in gas prices should be at least 14 percent in 2006, a source in the Russian government has told RBC. The source added that the industry and energy ministry had submitted the corresponding proposals to the government. In the ministry's opinion, this increase in prices would guarantee profitability of gas supplies to the domestic market. Additionally, the federal tariffs service believes that gas supplies would be profitable, if prices were raised 17 percent. At the same time the forecast for Russia's social and economic development for 2006 provides for increasing gas prices by not more than 11 percent, and the corresponding figures for 2007 and 2008 are 8 percent and 7 percent respectively. The source noted that this issue would cause serious discussion at the next meeting of the Cabinet. The limit on growth in fees for electrical power has been set at 7.5 percent for 2006, and the corresponding figures for 2007 and 2008 are 6.5 percent and 5.5 percent respectively. Railroad tariffs are to increase 8 percent, 7 percent and 5.5 percent in 2006, 2007 and 2008 respectively. The source did not rule out the possibility that the federal tariffs service would suggest that railroad fees should be raised more substantially.