The government allocated 11 billion rubles to help the railway capital

2021-05-03

The state budget will again help to ensure the profits of top management

The Russian government has allocated 11 billion rubles to support railway carriers. It is reported that the money will be spent on rental payments, maintenance, modernization and the purchase of new cars. But, it seems, not only for these purposes. In 2019, Russian Railways spent 2.7 billion rubles on remuneration for its top managers. In the first half of 2020, when an epidemic was raging across the country, the “feast in time of plague” was delicately covered up by reducing payments to a measly 460 million rubles … To prevent capitalists and officials from losing profits, the government generously finances them from the state budget.

Russian Railways is a monopoly

The decision to support passenger rail traffic is published on the website of the Russian government. It, in particular, states:

“Additional support was required by the industry due to the drop in passenger traffic amid the pandemic in 2020. The restrictions associated with the spread of COVID-19 negatively affected the condition of carriers, led to a shortage of working capital and slowed down the renewal of the car fleet.”

The problem really exists: in January – November 2020, passenger traffic on Russian railways fell by 28.4%, on long-distance routes – by 46.2%. However, it’s not just the coronavirus epidemic. According to the study, in August, 32% of those surveyed canceled their trips simply for lack of money. And this was the second reason for canceling trips – after fear of infection. No wonder: incomes of Russian people are constantly falling. This in itself contributes to a decrease in the number of rail traffic and, consequently, reduces the profits of the “captains” of Russian railways.

Some of the stabilization of the profits of the railroad capitalists is partly facilitated by the so-called “forced travelers” – passengers who simply have no choice due to the lack of alternatives to railways. According to Kommersant, these are “passengers of electric trains or those who travel to work in an otherwise inaccessible region.” However, due to the impoverishment of the population, it is becoming more and more difficult to make a deal on this category of Russian citizens. Of course, the “Federal Passenger Company” annually raises ticket prices, but this does not bring any significant profit, but only shifts the losses incurred by capital due to inflation onto the shoulders of citizens.

The crisis of capitalism, intensified many times by the epidemic, has long ago driven itself into a vicious circle: the impoverishment of the population leads to a decrease in effective demand, which reduces the profit of capital; this pushes the capitalists to a new rise in prices and tariffs, and the government to find new ways to squeeze money out of the population, which, in turn, leads to an even greater impoverishment of citizens. Obviously, if this vicious circle is not broken, it will end up in social catastrophe. And there is no one to break it – after all, all of the above is being done for the sake of making Russian billionaires even richer. The state serves them and stands guard over their interests. And it is not going to change anything in the way of its parasitic existence.