Analysis of expenses on transportation activities

Expenses on transportation activities totalled RUB 1,185.6 bln in 2014, a 1.7% increase compared with 2013.

Russian Railways transportation expenses, RUB bln
Indicator 2013 Actual 2014 Actual Change in actual 2014/ actual 2013
RUB bln  %
Expenses on transportation activities 1,165.9 1,185.6 19.7 101.7
Payroll expenses 385.6 380.0 –5.6 98.5
Allocations for social needs 102.9 104.8 1.8 101.8
Material expenses 381.7 393.0 11.2 102.9
Materials 77.7 55.0 –22.7 70.8
Fuel 81.3 84.3 3.0 103.7
including for train traction 66.2 69.6 3.5 105.3
Electricity 111.9 121.6 9.6 108.6
including for train traction 97.3 106.4 9.1 109.4
Other material expenses 110.9 132.2 21.3 119.2
Depreciation 180.9 188.3 7.4 104.1
Other expenses 114.8 119.6 4.9 104.2

Payroll expenses totalled RUB 380.0 bln in 2014, a decrease of 1.5%, or RUB 5.6 bln, compared with 2013. The change in expenses was due to the following factors:

At the same time, deferred expenses totalled RUB 15.4 bln due to the postponement of indexation to a later time.

Deductions for social needs totalled RUB 104.8 bln, an increase of 1.8% compared with 2013, or RUB 1.8 bln. The change in expenses was caused by the following factors:

Fuel expenses totalled RUB 84.3 bln, an increase of 3.7%, or RUB 3.0 bln, compared with 2013, including:

Factor analysis of RUB 19.7-bln change in expenses in 2014 compared with 2013

Factor analysis of RUB 19.7-bln change in expenses in 2014 compared with 2013

Electricity expenses totalled RUB 121.6 bln, an increase of 8.6%, or RUB 9.6 bln, compared with 2013, including:

All other tangible costs (materials and other material expenses) totalled RUB 187.1 bln, down 0.7%, or RUB 1.4 bln, from the 2013 level. The change in expenses is attributable to the following factors:

Depreciation amounted to RUB 188.3 bln in 2014, an increase of 4.1% (RUB +7.4 bln) compared with 2013.

The change in expenses resulted from the commissioning of new fixed assets as part of the Russian Railways investment programme as well as the retirement of several assets and ongoing work to mothball fixed assets not involved in the transportation process.

Other expenses totalled RUB 119.6 bln, an increase of 4.2%, or RUB 4.9 bln, compared with 2013. The main factors that influenced the change in other expenses were:

Railway transportation costs totalled 384.5 kop./10 virtual tkm in 2014, down 2.7% compared with 2013 despite average annual inflation of 7.8% in Russia.

Major repairs of fixed assets. Russian Railways spent almost RUB 51.5 bln on major repairs to fixed assets as operating expenses in 2014. This amount includes subsidies allocated to Russian Railways from the federal budget for major infrastructure repairs in the amount of RUB 26.0 bln.