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Russia to end Soviet-era system of subsidized public services in 2003
ITAR-TASS

Moscow, 22 March: Russia plans to stop subsidizing communal services in 2003 and the population will pay for them in full itself, according to Economic Development and Trade Minister German Gref.

The subsidies comprised R129.1bn in 2001, according to the communal reform draft to be discussed by the State Duma in April.

The press service of the lower house said on Thursday [21 March] that Gref had submitted the draft for consideration and the document envisages that compensations will be paid only to low-income families after they pay rent and other communal bills in full. Compensations are envisaged only if communal bills exceed 22 per cent of total family incomes.

Gref plans to end the Soviet-era practice when the government was the major party in maintaining communal services. Now the services will deal directly with the population.

However, the government plans to earmark R4.11bn to modernize communal services in 2003-2010.