UPDATE: PM: Russian tariffs to rise below inflation level in 2017–2019

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MOSCOW, Apr 21 (PRIME) -- Russian tariffs will rise below inflation levels in 2017–2019, Prime Minister Dmitry Medvedev said at a meeting with the government on Thursday.

“We also plan to approve the maximum levels of infrastructural companies’ tariffs – it is gas, production of electric power, railways and utilities. We have agreed that we will increase them below inflation and require infrastructure companies to cut costs more effectively,” Medvedev said.

Economic Development Minister Alexei Ulyukayev said that the ministry wants to increase gas tariffs by 3%, railway tariffs by 4.5% and tariffs on the wholesale power market by 7.5% in 2017, so that a rise in utilities’ tariffs will not exceed 4% in the period.

“We expect that not real inflation, but core target inflation which is estimated by the central bank at 4% will be taken into account, but the difference between real and core inflation will be within 1% from 2017,” Ulyukayev said.

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