PRESS: Russia orders state firms to cut operating costs by 10%

MOSCOW, Aug 8 (PRIME) -- Russia’s Federal State Property Management Agency has ordered state companies to reduce operating costs by 10%, business daily Vedomosti reported on Monday, citing a copy of the order.

“The document orders state representatives on boards of directors of companies controlled by the state to initiate meetings of boards of directors which will order managers to prepare and renew plans to reduce operating costs by 10%,” the newspaper reported.

According to the order, the companies must find a way to reduce spending in a month and to present their plans to the government.

A representative of the authority told Vedomosti that this measure will “reduce the prime cost of goods and spare money to invest and pay dividends.”

Russian Railways, Transneft, ALROSA and Russian Grids confirmed the receipt of the orders.

End