Russia-Public Transportation

Although the high price and scarcity of passenger automobiles required Soviet citizens to rely on public transportation, Soviet policy makers gave low priority to civilian transportation. Only six Russian cities have underground systems--Moscow, St. Petersburg, Yekaterinburg, Nizhniy Novgorod, Novosibirsk, and Samara. The extensive and decorative Moscow subway system, built in the 1930s as a showpiece of Stalinist engineering, remains the most reliable and inexpensive means of transportation in the nation's capital.

Elsewhere, buses are the main form of public transportation. In cities, tramways supplement bus service, accounting for one-third of the passenger-kilometers that buses travel. The Russian Federation continues the Soviet-era 70 percent state subsidy, which keeps fares artificially low. This subsidy has been a drain on the budget and has blunted the public's demand for alternative modes of transportation. The system's infrastructure and vehicle fleets require extensive repair and modernization.

Transportation Reform

In the first half of the 1990s, market forces shifted some of the demand among the various transportation services. Russian policy makers had not prescribed the proper role of the transportation sector in the new economy. However, officials indicated that Russia will follow the Western model of assuming government regulation of transportation systems while reducing state ownership of those systems.

Many state-owned transportation monopolies have been dissolved, but some monopolies such as public transportation are expected to remain in place. The role of government will be to ensure that the systems are commercially viable and allow private systems to emerge. The government also will continue to be responsible for maintaining the quality and availability of the road, air, and water infrastructure and for maintaining standards of transportation safety.

Data as of July 1996