By Andrey Ostroukh
MOSCOW--Russia's economy ministry said Monday it proposes to
limit annual energy price increases for businesses starting from
next year and to channel 200 billion rubles ($6.4 billion) to 400
billion rubles a year into infrastructure projects from the reserve
fund to boost economic growth.
Economy Minister Andrei Belousov told reporters that the
ministry proposes cutting an annual hike in gas tariffs for
industrial users to around 5% from 15% and to lower grid company
tariffs.
"Today it is very important to break the trend of [economic]
growth slowdown. It is very important to send a positive signal to
business [to show] that we are really working on supporting of
economic growth," Mr. Belousov said.
"[The] slowdown in tariffs' growth is a part of such a signal,"
he said, adding that a full freeze in tariff growth looks
"unrealistic" and the ministry will be ready to present the
proposals by May 6.
This year's planned tariff hikes can't be revised as they have
already been factored into the budget and companies' investment
projects, Mr. Belousov said.
He added that the country's gas monopoly OAO Gazprom (GAZP.RS)
has reserves to bear lower tariff hikes, and domestic prices for
gas would fall if the market is liberalized due to currently strong
supply.
Mr. Belousov also said that the ministry doesn't see room to
limit fare rises for the country's railway monopoly RZhD.
The central bank has been long blaming annual utility tariff
hikes for fuelling consumer inflation as the bank strives to tame
annual price growth, bringing it into the range of between 5% and
6% from 7% seen in March.
Lower inflation will allow the central bank to trim lending
rates, which in turn should result in cheaper loans for corporate
and retail clients of Russian banks.
Commenting on his earlier proposal to finance infrastructure
projects through the national welfare fund, he said that the key
point is that interest rates of such loans should be at inflation
levels of 5% to 6%.
"I think that we can speak about 200-400 billion rubles a year.
It is the amount which the infrustructure sector can digest. But
much depends of interest rates," Mr. Belousov said.
When asked about privatization and particularly state-controlled
telecoms company Rostelecom (RTKM.RS), he said that a sale of the
state stake is possible but won't happen before September.
On Friday the country's first deputy prime minister, Igor
Shuvalov, said that the government may sell its entire stake in
state-controlled Rostelecom in 2013 for a minimum of $5
billion.
Olga Razumovskaya in Moscow contributed to this article.
Write to Andrey Ostroukh at andrey.ostroukh@dowjones.com