OREANDA-NEWS. July 11, 2007. FSUE Russian Post sets unified tariffs for all types of editions in accordance with the recommendations of the Federal Antimonopoly Administration (FAA). Such statement was made by Yulia Vinogradova, Head of Directorate on Commercial Operations within the framework of press conference on the problem of press distribution in Izvesia media-center, reported the press-centre of Russian Post.

Yulia Vinogradova told of the changes in tariff rates for delivery of subscription production that was put into force from 9 July 2007. "Post can’t grant different tariffs to different types of editions. On Monday we have signed the document approved by the Ministry of Information Technologies and Communications of the RF according to the recommendations of the Federal Antimonopoly Administration. This document says that Russian Post has to unify the tariff rates".

Federal Antimonopoly Administration recognized difference in tariff rates for subscription for federal/regional and regional/city editions as invalid from technical and economic point of view. Postal expenses for subscription are equal for all types of editions. It is explained by the complex of work to deliver periodicals from newspaper kiosk to customer. The works performed by post to newspaper kiosk are included to subscription tariff. FAA control confirmed that current postal tariffs on orders by subscription and newspaper and magazine delivery don’t cover the expenses of the enterprise for the given service. Negative profitability of tariff rates in 2007 amounted 22 percent and the benefits granted for city and regional editions make profitability 50 per cent lower than the norm.

Having analyzed all subscription circulation of all the editions FAA of the Russian Federation set the rate to establish equal terms for giving a discount for the editions of all levels. The rate prompts editions to increase circulation.

As the transfer to unified tariff rates is an instantaneous process that can result in rush increase of postal expenses for all editions with low subscription tariff rates difference between tariff rates for federal/regional and district/city press will be gradually reduced within 2008-2009 (it concerns four subscription campaigns). In the first half year of 2008 the difference will be reduced from 35% to 25%. In addition FAA also plans to perform indexation of current tariff rates given the inflation.

In the second half year of 2006 in accordance with the recommendations of the FAA Russian Post gave the discount for the editions that single subscription circulation exceeds 240 thousand items within the Russian Federation. However in the first half year of 2008 discounts can be granted not only to federal editions with circulations from 230 thousand items, but regional ones with circulation from 15,5 thousand items. In the first half year of 2008 district/city editions will have discounts as well.

It should be noted that with implementation of new tariff system for subscription service in 2005 Russian Post broke long-term tradition of reduction of circulations. In the first half year of 2006 with the implementation of new system the reduction of subscription circulation was put down to the negative 2.8%. In the second half year subscription circulations grew by 0,4%. By the way subscription circulation for the first half year of 2007 grew by 4,1% compared to the former year.

Yulia Vinogradova also told that as forecasted subscription growth in the whole country for the second half year of 2007 should exceed the index of the first half year of 2007 amounted over 4%. Final figures based on the last subscription campaign will be published in 10 days.