Russia has 82 state and 10 federal state postal companies, with 1,900 post offices and branches; Russia's 2001 budget provides subsidies of Rb70 mil

ORIGINAL TITLE: Russia: Reforms of Russian postal services are required..
ABSTRACT: Russia: Russia has 82 state and 10 federal state postal companies,
with 1,900
post offices and branches, and around 40,000 communications branches,
according to materials prepared for a government session. Of the 82
regional
branches of the federal postal service, 30 are loss-makers. These branches
are
mainly in the Far North, Eastern Siberia and the Far East. The government
has
ordered the Communications Ministry and the Property Ministry to draft a
concept this year for restructuring the postal services taking into
account
their social importance. According to the government information
department,
the restructuring will boost efficiency of postal services and better use
of
federal property. Russian postal services lost 75.3 million rubles in the
first nine months of 2000. The federal budget for 2000 provided subsidies
of
50 million rubles, not enough to cover the losses. Due to geographical
factors, the state regulates charges, which are lower than the cost of
services. Concessions also cost the post 70 million rubles a year. The
2001
budget provides 70 million rubles in subsidies, while preliminary figures
put
losses at 152.2 million rubles. Uncovered losses from previous years have
reached more than 1 billion rubles. The Communications Ministry is taking
steps to stabilize and improve efficiency of postal services by expanding
the
range of services, improving competition through internal restructuring,
and
working with the Property Ministry on options for enlarging organizations
in
large economic regions. Russian postal services are featured with low
efficiency, high operating costs, and slow and unreliable delivery. ISSN
0256-551X; Page 7 (c) 2001 Resp. DB Svcs. All rts. reserv.
$$MOSKOVSKIE NOVOSTI, 06th March 2001