RZD hopes to receive RUB 460 billion of state support by 2020
Russian RZD hopes for state support during the next several years, which should ensure the company’s profitability for the near future, according to RZD’s official spokesman.
In November 2014 Arkady Dvorkovich, Russia’s Deputy Prime Minister, instructed RZD to design a strategy of further development of the company, which does not involve any support from the state.
However, according to the company, the absence of state support will result in annual losses of the company for the next 4-5 years. According to the company’s calculations, revenue and expenses by 2020 will increase by 33%, up to 2 trillion rubles and by 36% to 1.98 trillion rubles, respectively.
In this regard, the receive of state support is an acute need for the company, which should ensure its stable development.
It is planned that the majortity of state funds will be spent on major repairs of rail lines in Russia.
According to RZD plans, the volume of state support by 2020 should reach RUB 460 billion.
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