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Just essential result of city policy in the nineties, which consisted in the systematic destruction of the bus system in the city
Since 90s there was a mass of private operators with "Latvija" and "Gazelle" microbuses, called "Marshrutka" ("Маршрутка", acronym from "Маршрутное такси"). Some of these operators were "good friends" with city policy, and the bus transport wasn't developed at all (for example, there were no any new buses since 1994 up to 2002 at all). Bus operator was bankrupt several times and survived because of the "special passengers" - disabled people, pensioners and veterans, for whose transport the local policy payed to them. But when in 2006 a new law, which replaced the social benefits to the real money to the "special passengers", introduced - the bus operator died less then in 4 months.
In 2007, up to the new local elections, the wind changed it direction: the city policy bought 15 little Chinese buses - Dongfeng DFA6720KB02A, and gave it to the private operator "Ессентуки-Авто" with the buildings, vehicles and routes, belonged to the ЕПАТУ. But the private operators were not satisfied by the new direction of the wind - now there is a big scandal because of these routes...
So now old people cannot go by bus with no fee, they get extra money for such things and may spend it on whatever they want?
Such a situation was in 2006-2007. Now city policy introduced the new project of city benifits, which are served by Ессентуки-Авто. Other private operators now try to take a piece of this money-cake through the court and with scandal.
I've more widely described the situation here (in Russian):
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