State support for Russian Railways to increase in 2011.

By bne IntelliNews August 4, 2010
State-run railroad monopoly Russian Railways (RZD) is going to receive state support of RUB 75bn (USD 2.5bn) in 2011, deputy EconMin Andrei Klepach announced. Notably, this makes a 50% increase vs. previously planned RUB 50bn. RUB 20bn out of that are compensations for un-indexation of the cargo transportation tariffs, another RUB 35bn are going to be granted to RZD passenger carrying subsidiary and RUB 25bn to regional branches for subsidizing transportation in suburban areas. This year RZD is going to receive RUB 50bn of state support. As recently argued by head of RZD Vladimir Yakunin, RZD might need another RUB 400bn in state support for the period of 2010-2015. The funds would be necessary for realizing the investment program for the coming 6 years. Investment program of RZD for 2010 stands at RUB 270.5bn, main priorities being development and renewal of infrastructure on main transit and export-oriented directions. Russian Railways is 100% owned by the government.

Related Articles

Russias participation in Cyprus bail-out under question.

As Cyprus is trying to come up with new ways to raise EUR 5.8bn needed to secure the financing from ECB, EC, and IMF, Russia's participation in the package is not clear. According to the latest ... more

Fitch: Russian banks risks in Cyprus limited.

Fitch Ratings believes that resolution of the Cyprus crisis with a deposit levy or some other form of burden sharing involving creditors is unlikely to result in material losses for Russian ... more

Sources: Russia could triple oil exports to China.

Russia and China discuss contracts that would triple exports of Siberian oil through various transport corridors, Reuters reports citing unnamed sources in the industry. Rosneft is discussing ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335