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Russian ministry suggests $338.85 million fuel costs compensation to airlines

Staff Writer |
The Transport Ministry has suggested compensating 22.5 billion rubles ($338.85 million) to airlines in 2018 to compensate for a 30% growth of jet fuel prices that would translate into an additional 50 billion ruble spending, Minister Yevgeny Ditrikh told reporters.

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“We expect a combined growth of prices (for jet fuel) to amount to up to 30% this year, which may result in a significant increase of fares, so we’ve outlined proposals in this regard and offer one-time subsidies to airlines that would compensate costs coming from the high prices for jet fuel,” he said, adding that the additional spending on fuel may reach 50 billion rubles.

“The principle that we’ve suggested assumes jet fuel consumption and purchases to define the part of subsidy that a specific airline is to get. We’ve suggested the compensation amounting to 22.5 billion. We offered that to the Finance Ministry and the government, they discussed that last week, and the issue is being discussed now.”

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