2PL, 3PL and 4PL — levels of logistics service (PL-Party Logistics): partial logistics outsourcing, comprehensive logistics outsourcing and integrated logistics outsourcing.

GEFCO S.A. — a subsidiary of Russian Railways, which concluded a transaction on 20 December 2012 to purchase a 75% of shares in the French logistics operator GEFCO from PSA Peugeot Citroen for a cost of EUR 800 mln.

1,520 mm — the official track gauge of railways within the Commonwealth of Independent States, Baltic countries, Mongolia and Finland. The total length of the tracks within the ‘1520 space’ exceeds 150,000 km. It is referred to as the “broad” gauge. The ‘1520 space’ is the territory served by the ‘broad’ gauge railways.

NC Kazakhstan Temir Zholy — National Company Kazakhstan Railways.

Belarusian Railway — State Association Belarusian Railway.

UBR — Ulan Bator Railway.

HSR — high-speed railway.

Freight turnover — the volume of work to transport freight measured by tonne-kilometres. It is calculated by adding the multiplied value of the freight transported in tonnes by the distance travelled in kilometres.

S&A — subsidiaries and affiliates of Russian Railways.

TEU (twenty-foot equivalent unit) — the standard unit used to measure the quantity of transport flows, the acceptance capacity of container terminals or the carrying capacity of freight vehicles. Equal to ISO container dimensions with length of 20 feet (6.1 metres).

Common Economic Space (CES) — the economic and political integration of three nations: Russia, Kazakhstan and Belarus.

Intermodal transportation — sequential freight shipments using two or more types of transportation in the same transportation unit or vehicle without the trans-shipment of the actual freight when switching transportation modes.

Logistics costs — expenses on logistics operations (warehousing, transportation, collection, storage and transmission of data about orders, inventories, supplies, etc.).

Traffic routing — the system used to arrange freight shipments (entire trains) on routes from one or more destination railway stations to unloading points (station, berth, port) located in the same area.

International Union of Railways (UIC) — (French — Union Internationale des Chemins de fer) — an international organisation that unites national railway companies in order to jointly resolve problems involving the development of railway transportation.

RRS — railcar rolling stock.

IFRS — international financial reporting standards.

R&D — research and development activities.

United Transportation Logistics Company (UTLC) — a joint project by Russian Railways, Belarusian Railway and NC Kazakhstan Temir Zholy to establish a single logistics operator.

Organisation for Cooperation between Railways (OSJD) — an international organisation whose objectives include developing international freight and passenger transportation, establishing a common railway transportation space in the Eurasian region, improving the competitiveness of transcontinental railway routes as well as promoting technological progress as well as scientific and technical cooperation in railway transportation.

LRF — the gondola railcar fleet leased by Russian Railways from Federal Freight based on a contract dated 26 January 2012 on the lease of gondola cars (LRF) and Resolution No. 1051 of the Government of the Russian Federation “On the procedure for Open Joint-Stock Company Russian Railways to mobilise railway rolling stock for freight transportation and on the establishment of a special pricing procedure for freight transportation via such rolling stock”. The legal status of the LRF is similar to that of the carrier’s fleet (general fleet), but with due account of the special aspects of tariff regulation stipulated by Order No. 444-t/4 of the Federal Tariffs Service dated 27 December 2011.

Passenger turnover — the volume of work to transport passengers measured by passenger-kilometres. It is determined by adding the multiplied value of the number of passengers for each transportation category by the distance travelled in kilometres.

Federal Freight Company (FFC) — one of the largest railway freight transportation operators in Russia.

Passenger transportation (dispatch) — the volume of work performed to transport passengers as determined by the number of tickets sold and issued free of charge in a particular reporting period taking into account the passenger trips made attributable to this period based on group tickets, freight documents, commuter tickets and other tickets.

Handling (freight shipment) — the weight of freight in tonnes accepted for transportation via the railway network. The value is calculated as the sum of all shipments accepted during the reporting period for transportation within the country directly from shippers, from other types of transportation for further transportation and from foreign railways.

SPC — suburban passenger companies.

ROR — the railway operating rules of the Russian Federation.

RAS — Russian Accounting Standards.

RCGC — Regional Corporate Governance Centre.

Process and price audit (PPA) — an expert assessment of the feasibility of an investment project, the selection of the projected technological and cost solutions for building facilities as part of an investment project, the compliance of the solutions with market practices and international analogues as well as the reliability of construction costs and operating expenses to implement the investment project during the process of its life cycle.

Federal Freight Company (FFC) (Second Freight Company prior to 13 October 2012) — a subsidiary of Russian Railways established in accordance with the decision of the Russian Railways Board of Directors dated 26 August 2010 and one of the largest railway freight transportation operators in Russia.

Federal Passenger Company (FPC) — a subsidiary of Russian Railways that provides long-haul passenger and luggage transportation by railways.

FTS, FTS of Russia — the Federal Tariffs Service. The federal executive authority in charge of regulating natural monopolies; handles the government regulation of prices (tariffs), in particular on railway transportation, in accordance with the legislation of the Russian Federation.

SMGS — Agreement on International Goods Transport by Rail. The CIM/SMGS is a unified consignment note.