The Lithuanian state will compensate railway company Lietuvos Gelezinkeliai (LG) for the losses incurred due to passenger transport starting from 2018. The state grant will depend, however, on the dividend paid by the company, according to Transport and Communications Minister Rokas Masiulis. Thus, LG will not receive compensation from the state if it does not post profit and does not pay dividend to the state.
“Lietuvos Gelezinkeliai will receive compensation for transporting passengers, if it pays the same or larger amount in dividend to the state budget. It is not a victory for the railway company, (…) it is not like the budget will finance the passenger transportation operations, there is no major change,” Rokas Masiulis said.
According to the 2018 budget draft, the railway company could receive up to 35.752 million euros in compensation next year. LG incurred 36.5 million euros in damages from passenger transport operations last year and 16.8 million euros in the first half of 2017, which is a decline by 6.1% year-on-year.
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