MPS: switching arrows

(Photo: Dmitry Korobeinikov )

The last dinosaur of socialism - the ministry combining administrative and economic functions - is finally sentenced to death. True, not earlier than in a year.

Last week, the board of the Ministry of Railways considered the concept of reforming the ministry, which involves dividing it into two parts: the joint-stock state company Russian Railways (RZD) and the ministry itself. At the same time, all functions of the state executive power (in particular, tariff policy) will remain under the jurisdiction of the Ministry of Railways, and economic functions will be transferred to Russian Railways.

The draft concept has already been approved by the president and received the blessing of experts from the Center for Strategic Research, heads of railways and trade unions: the minister was pushed towards reform by everyone who could.

It would be difficult to imagine that the head of the Ministry of Railways, Nikolai Aksenenko, is particularly happy about the reforms. Realizing that the Ministry of Railways could not be preserved in its current form - it would be transformed under his strict leadership or without it - Aksenenko led the movement to develop a concept of reform. The resulting document clearly reveals the author’s intentions: in order to maintain control over all financial flows, Aksenenko sought to reform the monopoly in such a way as to change practically nothing. He does not allow the idea that Russian Railways shares could ever be sold, and demands that they be secured forever in state ownership by making appropriate amendments to the Constitution (after all, such a form as a joint-stock state company does not exist in Russian legislation). He also does not accept the path suggested by officials from the Ministry of Economic Development: to create joint-stock companies on the basis of 17 railways (according to Aksenenko’s plan, they should become only branches of Russian Railways, and not independent legal entities). The minister is going to leave the infrastructure of the Ministry of Railways - railway lines (not a single ministry owns transport highways, they are separated into independent legal entities).

Moreover, Aksenenko wants to spend a year developing new legislation for the reform of the Ministry of Railways, so as not to repeat the mistakes of the privatizers. As for the concept itself, it will need to be finalized taking into account the comments made by other ministries. True, the Minister of Transport does not want to rush here either - a detailed plan for implementing the concept can be adopted in December 2000.

So it’s too early for passengers to rejoice: there is no talk of any competition between carriers in the coming year, as well as, apparently, a reduction in railway tariffs, which will approximately double by the beginning of next year.