Federal<br/>Passenger Company Annual Report

Reduced public mobility

The slowdown in the pace of Russia’s economic growth was a notable factor in 2013. GDP growth in 2013 amounted to 1.3%. The consumer price index (inflation) reached 6.5 % in 2013 (a fall of 0.1% against 2012). By the end of the period, unemployment had remained at the level for 2012, at 5.5%. Real disposable income fell by 1.3% against the figure for 2012.

In 2013, the slowdown of economic growth in Russia was accompanied by a population mobility decreasing. The long-distance intrastate passenger turnover of all transport carriers fell by 0.9%.

The main contributing factor to the drop in the company’s passenger turnover was the significant price hike in tariffs for passenger rail services in the regulated segment (over 30% in some months of the year), against increased competition from airline and bus operators; this, combined with an unfavourable macroeconomic climate resulted in a slowdown in economic growth and real disposable income.