The Moscow Commercial Court on June 21, 2013 granted the lawsuit filed by Russian Railways for collecting 7.03 bln rubles (approx. $215 mln) from the Finance Ministry for the transportation of benefit recipients in 2009.

The court dismissed the company’s claims to the co-defendants in the case - the Healthcare Ministry and the Labor and Social Protection Ministry.

According to the Prime business news agency, Russian Railways demanded compensation for its losses from the transportation of benefit recipients in 2009.

The news agency’s source said that under an agreement on the transportation of benefit recipients in 2009 signed with the Healthcare Ministry in late 2008, Russian Railways was to receive compensation for profit shortfall resulting from this agreement.

The rail monopoly said the transportation of benefit recipients in 2009 cost the company 11 bln rubles (approx. $365 mln), but only 4 bln rubles (approx. $133 mln) were issued in compensation from the federal budget.

Russian Railways, which may not refuse to transport benefit recipients, has notified the government and the ministry that the allocations would not cover its expenses.

A Finance Ministry spokesperson argued that the plaintiff had not provided substantiation for the sum claimed and also did not comply with the procedure for requesting compensation. Russian Railways sent its compensation requests not to the Healthcare Ministry but to the Finance Ministry in 2011. The Finance Ministry is not a signatory of the agreement, and its guilt has not been proved.

A Labor Ministry spokesperson said the plaintiff filed its suit after the statute of limitations expired.

A railway monopoly spokesperson said during the prehearing that an out-of-court settlement was a possibility.

However, the sides said on June 21, 2013 that they failed to settle their dispute out of court.

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