Transcript of the beginning of the meeting:

Vladimir Putin: So you have just returned from Krasnoyarsk, haven’t you? 

Vladimir Yakunin: Yes, Mr Putin. I will now report back to you. According to your instruction, I left for Krasnoyarsk on Saturday after holding telephone consultations with five regional governors – all of them from Siberian regions. I must say that the governors took your instruction very seriously: they all sent their deputies to the meeting. Only one of them, from Omsk, did not make it to Krasnoyarsk because it is too far away. We met there on Sunday. They agreed that I should chair the meeting. As I said, four regional governors attended, as well as heads of the Krasnoyarsk Chamber of Commerce and Industry, the Union of Industrialists and Entrepreneurs, representatives of legislature and law enforcement agencies.

We covered the whole range of issues. Here is my summary: the information we heard on the critical situation with shipping farm products from the Kransoyarsk Territory and other Siberian regions has not been confirmed. There were some routine problems to be handled. But local farmers – particularly grain producers – said they expected some tight spots with loading their freight but they are in no hurry to do it and are waiting until prices rise a bit. The minutes of the meeting were recorded; we’ll submit them to you as soon as they are finalised and signed.

I have also inspected the loading of steam coal – something that directly affects both the energy sector and housing and utilities. You know that there have been some problems, Mr Putin, in most regions – I have reported that much. The problem is lack of coordination between those engaged in shipping. An important decision was taken following your instruction. Until the necessary changes are made in the legal framework, we agreed to set up a coordination council in the regions along the whole stretch of our railways. It includes regional officials as well as freighters, who are the customers for our services. Large rolling stock operators are also involved where necessary (as was the case in Kemerovo). We coordinate our plans, and agree, for example, to limit certain coal companies’ access to access roads, or restrict the number of private railway vehicles owned by small businesses – to prevent dense traffic –  for it is impossible to drag the needed railway vehicle out of a jam. The regional heads supported this decision. A proposal on this will soon be formulated. I think that I will be able to send you a written report in a few days.

I have to admit that the situation still requires constant monitoring. We are keeping a watch on it. A special group has been set up at Russian Railways, which communicates with regional officials and freighters 24 hours a day to avoid emergencies. That concludes my report.

Vladimir Putin: Thank you Mr Yakunin. I am glad that you have gone there. Thank you for your work, for meeting with the people and for your fact-finding effort. At the same time, since farmers have expressed their concerns to both me and Mr Medvedev – and they sounded very emotional too – I have difficulty believing that things are as smooth as you say they are. You have indeed gathered many different people – including business representatives – but they could have been from big companies that purchase large quantities of grain. But the people who came to see me could have represented small businesses. They could not get to top executives like yourself or the regional officials you met with. But the system should work for all of them in a comfortable and convenient way. I would like you to take a closer look at this.

Second, we have discussed the economic aspects of your company’s operations. You are currently using Price List No 10-01 as the basis for exact freight shipment fee calculations, right?

Vladimir Yakunin: Yes. This is the state standard we use.

Vladimir Putin: I know that with your service fees based on this 10-01 standard, your profitability is just above, or even below, zero. We have agreed to give you the right … The new system will be finalised soon and you will be able to regulate your fees within some reasonable price corridor, to make your operations profitable, at least to some extent. But right now, as we discussed with you, you could be operating at a small loss – but you’ll be able to compensate for that loss very soon. This work needs to be started now. We will work out the new tariff within a month, as you know. The Tariffs Service is working on it. We will make amendments to the existing laws if we have to (and I have a feeling that we will have to do so), but this work should absolutely be started now.

And – back to the first issue we discussed – it is important that each of the market operators is comfortable while using the railways: large companies, small and medium-sized businesses. Please focus on this aspect of the problem and do not think this issue is closed. 

Vladimir Yakunin: We do not think it’s closed, Mr Putin. Certainty not. You are absolutely right here. We are working with the Federal Tariffs Service too. You are absolutely right. A government resolution has been drafted, and all the proposals included in it are in fact aimed at meeting the needs of all freighters, not only large ones (which account for 70% of the total), but small and medium-sized businesses as well.

Vladimir Putin: Mr Yakunin, you know better than I do that large companies such as Russian Railways are not much different from state-owned conglomerates – a lot of red tape. It could be useful sometimes, when it comes to organising technical work or ensuring safety, etc. But in times like this, when we need to ship the new harvest, when we are preparing for the winter and need to deliver steam coal, or during other crucial efforts, we need to operate smoothly, in a way that is convenient for our customers. Let me repeat this: I am not going to dismiss this problem, but I ask you to give it more of your attention.

Vladimir Yakunin: All right Mr Putin. Thank you.