Converting part of RZD's debt into shares not being discussed - VTB first deputy CEO

MOSCOW. Nov 28 (Interfax) - Converting part of the debt of OJSC Russian Railways (RZD) into shares as a financial support measure is out of the question, First Deputy CEO of VTB Dmitry Pyanov said.

Reuters has reported, citing sources, that the Russian government is seeking out ways to help RZD. The measures which were being considered on November 19 include raising tariffs for cargo transportation, granting subsidies in advance, carrying over tax payments and even converting part of the debt into shares to be subsequently purchased by the government.

"What you are describing is absolutely out of line with reality," Pyanov told journalists, asked whether he thought it was realistic to convert the company's debt into shares.

Finance Minister Anton Siluanov confirmed on Wednesday that the matter of restructuring RZD's debt had been discussed.

"RZD is currently taking measures to work on its debt, restructure the debt, ease the debt burden for next year, and is working with credit organizations," he said.

RZD's net debt amounted to 3.3 trillion rubles at the end of the first half, including bank loans and bonds, and almost 1.8 trillion rubles of short-term debt to be repaid within a year. According to sources cited by Reuters, the company's debt has now increased to at least 4 trillion rubles.

It was reported that an investment program and RZD's budget for 2026 would be discussed at a government meeting on December 11.

At the end of last year, RZD's 2025 investment program was approved with a sum of 890.9 billion rubles, 28.6% lower than the 1.275 trillion rubles approved for 2024.