"Russian Post" Seeks Assistance from the State

"Russian Post" Seeks Assistance from the State

The Russian Post will conduct an audit of its expenditures, following which measures of state support will be determined. State support may include refinancing a debt of 153 billion rubles, obtaining a new, more favorable loan for the repayment of existing debt, and a capital injection of 117 billion rubles to help the company return to stable operation.

In addition, Russian Post is requesting regulatory relief, specifically the elimination of certain unprofitable branches and changes to the mail delivery schedule. The proposed changes include reducing delivery days from six to five days per week for federal centers, from five to three for municipal areas, and from three to one for all others. The Post anticipates that these adjustments will lead to salary savings and formalize part-time employment.

The company hopes to achieve a net profit of 6 billion rubles in 2024 and 33 billion rubles in 2025 with support from the government. Previously, the company stated that reports of staff reductions were just rumors. Now, workers have confirmed these rumors.

Defenders of private ownership argue that the invisible hand of the market is capable of regulating everything on its own, but the facts tell a different story. Businesses do not thrive without state support, such as substantial financial injections from external sources and laws designed to favor them. Whenever a corporation faces a loss, the government rushes to its aid, providing budgetary funds taken from the pockets of ordinary citizens. With this, the needs and aspirations of the common people are ignored by those in power. This holds true not only for Russia but for the entire world.

This is how capitalism operates: the economy and authority belong to the wealthiest minority in society. Despite their direct involvement in production, the workers’ share in national income continually diminishes, while the tax burden on them increases. Meanwhile, entrepreneurs raise prices for goods and services, pushing more and more of the working class into poverty. As a result, capitalists continually increase their wealth, living a life of opulence.

As long as business owners dominate, the laborer in any state will always be thinking of how to make it through another day, while a minuscule group of oligarchs revel on their luxurious yachts. Only a conscious, worldwide struggle of the working class can permanently eliminate capitalism and replace it with socialism, in which there is no exploitation, the means of production belong to the people, and everyone has equal opportunity to work them.

Source: RBC - "Authorities to Conduct Audit of "Russian Post's" Financial Deficit" dated October 6, 2023.