OREANDA-NEWS. On February 11, 2007 as said A.I.Kazmin, General Director of FSUE Russian Post at the Enlarged Session of the Collegium of the Ministry of Communications and Information Technologies of the RF on work results in 2007 and goals for the midterm, reported the press-centre of Russian Post.

Drawing the results of the enterprise’s activities for 2007, А.I. Kazmin noted high growth rate of services both in postal and financial spheres. Тhus, growth of written correspondence volumes made up 14%, volumes of delivered parcels grew by 25%, 1st Class Mails and EMS mails volumes grew 2 and 1,5 times respectively. Volume of postal orders for 2007 amounted over 360 bln rubles, raised by 12% compared to 2006.

High rates of volumes of services kept the enterprise’s earnings rates growth amounted 23% for 2007. However, General Director noted, that despite of the success, financial-economy rates of Russian Post’s activities have considerably turned for the worse.

Among the reasons of losses A.I. Kazmin mentioned imperfection of RF legislation, increase of labor compensation fund, socially oriented, however lossmaking services as public accessible postal services, delivery of pensions, allowances and periodicals.

Labor expenses account for 60% of the enterprise’s profits. Annually this figure increases with growing number of personnel due to prolongation of the working day of post offices, annual increase of average month wage raised 32% amounted 8, 263 rub in 2007. Despite of the measures wages rate is not high, thus prompts rapid personnel fluctuation and low service quality.

Loss in many activities of the enterprise due to socially oriented tariffs became the crucial factor of outrunning growth of expenses over profits. Tariff rates for some postal services didn’t become higher with formal inflation figures.

Tariff rates for postal services are set by the state given the most unprotected people. In fact, the tariffs are granted for all the customers, including commercial companies, large state-financed public agencies. Performing delivery by unified state tariff rates Russian Post subsidizes the companies that don’t cover cost value of the services. As a matter of fact tariffs for registered mail are 2 times lower of real expenses. This fact is explained by gap between high labor intensity on sorting of registered mail and low rates of tariff indexation.

Annual compensation for losses of the services from the federal budget makes up 146 mln rubles. Actual losses of postal services rendered made up 4 bln rubles in 2006, 5,8 bln rubles in 2007. If the services are rendered for the same tariff rates in 2008 their cost value will increase by 19%.