Support The Moscow Times!

Russian Railways Gets $1.2 Billion From State for Investment Projects

Russian Railways currently has a charter capital of 1.97 trillion rubles.

The Russian government will increase the charter capital of state railroad monopoly Russian Railways by 64.3 billion rubles ($1.2 billion) to help the giant corporation carry out a series of investment projects, the government said in a statement Tuesday.

Russian Railways, the country's largest employer with a workforce of more than 1 million people, currently has a charter capital of 1.97 trillion rubles ($37 billion), meaning it will now rise by 3 percent to 2.03 trillion rubles ($38.1 billion), the Prime news agency reported.

Of the extra capital, 16.9 billion rubles ($316 million) will go to modernizing the century-old Trans-Siberian Railroad and its tributary, the Baikal-Amur Mainline, the statement said.

Another 19.3 billion rubles ($362 million) will be used for developing public transport in the Moscow region. Others projects on the list include the construction of a high-speed railway between Moscow and Kazan.

Russian Railways warned the government in March that it would need 460 billion rubles ($8.6 billion) in state subsidies through 2020 to avoid net losses that could force the company to cut its investment program, the Vedomosti newspaper reported, citing a copy of a letter from the company.

Read more

The need for honest and objective information on Russia is more relevant now than ever before!

To keep our newsroom in Moscow running, we need your support.