Russian Railways: Navigating the Financial Tracks

Russia's largest commercial employer, Russian Railways, faces financial challenges with a 4 trillion rouble debt. The government explores strategies, including subsidies and debt conversion, to support the state-owned enterprise as the economy slows amid high interest rates and military expenditures.

The Russian government is urgently seeking solutions to alleviate the financial burden on Russian Railways, the country's largest commercial employer, which has accumulated a substantial debt of 4 trillion roubles.

According to sources, discussions have circled around possible support measures, such as price hikes for cargo, increased subsidies, tax reductions, or leveraging funds from the National Wealth Fund. Talks are ongoing as Russian Railways struggles with high interest rates amid a slowing economy.

Additional proposals, not yet debated at the governmental level, include capping interest rates or converting debts into equity shares for state banks, highlighting the gravity of preserving this key economic bellwether.

(With inputs from agencies.)