Russia's Rail Monopoly Forced to Scale Heights of Economic Crisis

The Russian government has ordered Russian Railways to sell a 62-floor skyscraper in central Moscow to help alleviate its $50 billion debt. This decision follows a fall in revenues due to a slowing war economy and increasing debt costs. The skyscraper sale aims to prevent cargo price hikes.

The Russian government has mandated Russian Railways to divest a 62-floor skyscraper in Moscow, aiming to mitigate the railway monopoly's soaring $50 billion debt, sources told Reuters.

The state-owned company, employing about 700,000 people, faces a revenue slump amidst a decelerating war economy, with debt pressures mounting as interest rates hit two-decade highs.

Sale of the 'Moscow Towers' was prompted to stave off significant hikes in cargo transport prices. Russian Railways was directed to sell the skyscraper for no less than its 2024 valuation of 193.1 billion roubles ($2.42 billion), sources stated.

(With inputs from agencies.)