Russian Railways (RZD) has warned that it will need 460 billion rubles (USD 8 billion) in state subsidies through 2020 to plug losses, daily newspaper Vedomosti reported, citing a copy of the company’s strategy through 2030, writes The Moscow Times.
The strategy said either state subsidies or “other solutions to ensure growth in operating revenue” would be needed to avoid net losses over the next five years that would lead to loan repayment problems and investment cutbacks, according to the paper.
Russian Railways is investing in major infrastructure upgrades even as Russia’s economic slump deepens.
Russian Railways’ strategy did not specify how the requested subsidies would be used, Vedomosti said. In an earlier account of its strategy, the company said it needed 516 billion rubles ($9 billion) in state subsidies from 2014 to 2020 to renovate railway tracks.
Share on:
