Russia’s Vnesheconombank will grant three loans in order to support the export of rail cars in Hungary, Iran and Kazakhstan. VEB financing of a contract to supply Uralvagonzavod cars to Azerbaijan was of key importance and more talks are underway, PM Dmitry Medvedev said. ‘I will sign off on the VEB Supervisory Council’s decision to grant three loans to support the export of passenger and freight cars – for Metrovagonmash to Hungary and for Uralvagonzavod to Iran and Kazakhstan.’
Despite a 37 percent decline in the rolling stock market, the Russian Government supports the railway industry by implement some measures and offer subsidies to the manufacturers. ‘We managed to avoid a deeper decline by building up exports, practically by two-thirds, and implementing an array of state support measures-in 2015. These include subsidies to stimulate demand for innovative carriages, a measure that helped to provide contracts for companies and to build an additional 10,000 carriages. We also provided 1 billion and 1.5 billion roubles (USD 12.7-19 million) in subsidies for technological modernisation and for paying interest on working asset loans, respectively. We will continue to subsidise train manufacturing and provide companies with large contacts,’ Medvedev said.
About 1.4 billion roubles (USD 17.8 million) was provided to support the export of the high-tech goods of our train manufacturing plants. In addition, 60 billion roubles (USD 762.6 million) from the National Wealth Fund was invested in Russian Railways bonds. The funds were spent on procuring locomotives. ‘I believe it is right to continue financing locomotive procurement with NWF funds this year as well.’ Medvedev said.
Medvedev signed a Government directive approving a programme to support transport engineering in 2016. The programme contains a number of important provisions – first, a ban on the use of carriages with an extended lifespan and second, subsidies to investment projects to produce innovative freight cars. Third, we will reimburse operators new-carriage procurement costs. Up to 7 billion roubles (USD 89 million) have been earmarked for this purpose. The decision was taken to reduce VAT on passenger service on long-distance trains by 8 percent to 10 percent. Carriers, primarily the Federal Passenger Company, will spend the resulting funds on procuring new rolling stock.
For Russia, a key objective in rail transport engineering is the manufacturing of modern, innovative carriages and locomotives – safe, profitable and fast. Factoring in the weakening rouble, this can also become a significant export incentive, Medvedev explained.
Photo: Metrovagonmash
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