The current ratings assigned to Russian Railways, a joint stock company, allow it to take long-term loans

Tuesday, December 1, 2020

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The current ratings assigned to Russian Railways, a joint stock company, allow it to take long-term loans, said Russian Railways President Gennady Fadeyev at a press conference on Tuesday. "Up until 2010, we plan to invest 1.8 trillion rubles [$1 is approximately 29 rubles] in the development of the company," Mr. Fadeyev said. "It is a very fast rate of development," he said, "and we would be naive to think that we could use our own financial assets alone." He noted that the company's new ratings, which were assigned by international rating agencies, would positively affect the company's ability to attract new financial assets and their cost. "Up until 2010, we plan to invest about $7 billion on updating trains and about $4 billion will be spent on the infrastructure of the Baikal-Amur line," he said. "Besides, a new high-speed Helsinki-St. Petersburg-Moscow line will open in 2008." (On July 6, Standard & Poor's assigned Russian Railways a BB+ for long-term loans and an AA+ rating on the Russian scale and gave it a stable forecast, which corresponds to Russia's rating. On July 12, Moody's gave Russian Railways a Baa3 rating with a stable forecast, which also corresponds to Russia's rating.) In 2004, Russian Railways plans to transport 8 million metric tons of oil to China, Mr. Fadeyev said. He noted that in February 2004, Russian Railways and Yukos had concluded a contract to transport 6 million metric tons of oil to China. "However, given the rate of transportation, this year we will deliver that figure [8 million metric tons]." He also predicted that by 2005, Russian Railways would transport 15 million metric tons of oil to China. "We cannot miss such unique chance," he said, "at a time when there are such high prices on the oil market. We will increase deliveries of oil and petroleum products to the east, as it positively influences the development of all of eastern Siberia's transportation infrastructure."

Bookmark The current ratings assigned to Russian Railways, a joint stock company, allow it to take long-term loans