The Railways are not allowed to pay dividends with a condition of refusal of state support

© RIA Novosti / Natalia to Seliverstova in fotomontaggi RailwaysThe Railways are not allowed to pay dividends with a condition of refusal of state support© RIA Novosti / Natalia to Seliverstova the image Bank

Railways 2025 are not allowed to pay dividends on ordinary shares and invest net income in the projects, but then the company should not apply to 1 trillion rubles of state support, in particular, to 200 billion rubles to expedite the movement of containers and the increase in transit, told reporters Deputy transport Minister Alan Lushnikov.

General Director of Russian Railways Oleg Belozerov in March reported that the company proposes to pay dividends only on privileged shares, and the remaining income earmarked for investments.

«We expected the decision of the presidential Commission on fuel and energy complex. When the preparation was discussed that the profits of Russian Railways remains the property of the company in order to invest. The result was the Ministry’s position that the Railways should no longer qualify for state support for investments in infrastructure,» said Lushnikov.

He explained that the decision to pay or not to pay the dividends of Russian Railways, will be taken in conjunction with the long-term development programme (DPR) of the railway monopoly until 2025. Initially, said the Deputy Minister, it was assumed funding of the DPR in the amount of 7 trillion rubles, of which 6 trillion rubles at the expense of the Railways, the remaining state support. «Now the state support is not expected,» he said.

«In this regard, the main plan now laid down that the company will use their money instead of those 200 billion rubles from the budget, which the Ministry originally expected to select the company to expedite the movement of containers and the increase of transit», — said the Deputy Minister.

Russian President Vladimir Putin in may this year gave a number of instructions until 2024 for transport infrastructure. It they are, in particular, was on measures to increase throughput and capacity of infrastructure to increase transit container turnover of 4 times, including the TRANS-Siberian railway in 7 days.

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