RZD President presents the impediments of rail company privatisation

A 25% shareholding in Russian Railways may be sold only after the company stops getting subsidies from the government, said Vladimir Yakunin during a press interview.

Yakunin explained that RZD suffered losses because of state tariff regulation, and the losses are compensated from the budget. Therefore, the profit of investors will consist of state subsidies.

According to the RZD President, the plan previously approved by the government and which mentions the privatisation of the company in 2013, is “preliminary” and the government must discuss the algorithm of its realization together with RZD.

The deficit of RZD’s investment programme amounts to RUB 400 Billion (EUR 10 Billion) nowadays, and only RUB 260 Billion (EUR 6.6 Billion) can be received from selling the shares, said Vladimir Yakunin.

Source : www.rzd-partner.com

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