Russian Transport Ministry increases subsidies for maritime transport to Kaliningrad by 400 mln rubles in 2023 - Governor

KALININGRAD. Nov 22 (Interfax) - Kaliningrad authorities have agreed with the Ministry of Transport to allocate additional funds in 2023 to subsidize maritime transport to the region, Governor Anton Alikhanov told reporters on Wednesday.

"We managed to agree with the Ministry of Transport to increase the amount of funds allocated to subsidize maritime transport to the region. By the end of the year, 400 million rubles will be received. As a result, 2.2 billion rubles will have been spent on subsidies throughout the year," Alikhanov said.

The governor said that the 2024 budget provides subsidies for maritime transport of 2 billion rubles. However, as these funds are chosen by carrier companies, regional authorities intend to request the allocation of additional funds.

"Most likely, this will be in the fall of next year. This is evidenced by the dynamics of spending subsidies this year, as well as another objective fact. In January 2024, the quotas established by Lithuania for the transit of goods by rail will be reset. And therefore, a redistribution of cargo volumes may occur from rail to sea," the governor said.

He also noted that this year, after preferential tariffs were introduced for maritime transportation, it became more profitable for transport companies to transport many goods by sea rather than by rail.

As reported, the Federal Agency for Maritime and River Transport (Rosmorrechflot) for the first time distributed subsidies for maritime transport of 1.3 billion rubles at the end of 2022.

In 2023, Rosmorrechflot distributed all 3.8 billion rubles in annual subsidies to subsidize maritime transport to Kaliningrad. However, these funds were then cut to 1.8 billion rubles. The Kaliningrad authorities then began working with the Ministry of Transport to restore the previous level of support.

Due to subsidies and preferential tariffs, the price of sea transportation has become comparable to that of transportation by rail.

At the beginning of November, sea transportation of goods between the Kaliningrad region and the main territory of Russia was provided by about 25 ships and ferries. They operate on several regular lines: Ust-Luga - Baltiysk, Bronka - Kaliningrad, St. Petersburg - Baltiysk, and St. Petersburg - Kaliningrad.

The importance of the Kaliningrad cargo sea line increased after Lithuania introduced restrictions on rail and road transit of sanctioned cargo starting in mid-2022. Transportation by rail is conducted within established quotas for certain categories of cargo. However, these yearly quotas are gradually being chosen. At the same time, transit of sanctioned cargo by truck through Lithuania is prohibited.