Putin approves series of measures to support RZD investment program in 2020
MOSCOW. June 1 (Interfax) - Russian President Vladimir Putin has instructed the government to take a number of measures in order to prevent any sharp drop in the amount of the Russian Railways' investment program.
The decision was taken following the government meeting on transport development that President Putin held on May 7. The text of the meeting is published on the Kremlin's website.
Specifically, the president instructed the Cabinet to expedite the allocation of funds to Russian Railways from the National Wealth Fund (NWF) to develop the Baikal-Amur and Trans-Siberian railways. The 30.5 billion rubles that were reserved in the NWF for the project for 2021 will have to be allocated to the railways company in 2020.
Taking into account the amount of the current year, a total of 60.5 billion rubles from the fund are planned to be allocated to the monopoly in 2020. The Cabinet is ordered to determine the procedure for using these funds. The timeframe for implementing the order is June 15, and Prime Minister Mikhail Mishustin is the one responsible for completing the instruction.
At the same time, the government, together with Central Bank of Russia (CBR), must take decisions that will ensure the placement of 370 billion rubles in perpetual bonds of Russian Railways in 2020. The funds are planned to be directed to finance both the investment program of Russian Railways itself as well as to capex of RZD's JSC Federal Passenger Company subsidiary. If necessary, amendments to regulatory acts must be made.
Another order concerns the freezing of the tax rate on railway infrastructure facilities at 1.6% as of 2021. The Cabinet must prepare the relevant proposals jointly with the regional authorities and submit them by August 10.
