Russian Railways to attract up to $4 billion on stock market
Russian Railways plans to attract $2 to $4 billion through its subsidiaries, the rail monopoly's head, Vladimir Yakunin, said at a presidential conference Tuesday, RIA Novosti reports.
Earlier Tuesday, President Vladimir Putin discussed railroad development with Prime Minister Mikhail Fradkov, head of Russian Railways Vladimir Yakunin, Transport Minister Igor Levitin and Economic Development and Trade Minister German Gref.
"Under an initial plan, we planned to establish a single company and attract $2 to $4 billion," Yakunin said following the presidential conference.
However, Yakunin said, another company could be established after assessing the results of the first subsidiary's activity.
The monopoly's head also said Russian railroads, which are wider than European, could be extended to Europe for the sake of transport integration.
He said the president and participants in the conference approved the proposal "of our Western partners to extend railroads to Europe," and issued corresponding instructions.
Yakunin said: "Speaking of railroads, our task is to establish compatible traffic control systems and develop new rolling stock and engines."
Yakunin also said it would be necessary to establish a system of risk insurance for operations on foreign markets, in particular in railway projects.
He said Western companies did handle such insurance, including against political risks, while "we do not have such a system."
President Vladimir Putin told the conference it would be necessary to establish Russian Railways subsidiaries, which could enter the stock market later on to increase the parent company's capitalization.
Addressing the conference, Putin said: "Russian Railways will be unable to mobilize the required amount of resources [for the reform] even if existing railway tariffs are adjusted."
