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Russian Railways receives 22.4 billion roubles in dividends

Posted by Editor on 26.12.2011 12:10 | Published in Road & Rail Transport

In 2011, Russian Railways received 22.4 billion roubles in dividend income from its subsidiaries and affiliated companies, consisting of 11.9 billion roubles in dividends from 2010 and 10.5 billion roubles in total dividends from Open Joint Stock Company First Freight and Open Joint Stock Company RosZheldorProek for the first half of 2011.


By comparison, in 2010, Russian Railways received 1.0 billion roubles in dividends from its subsidiaries and affiliated companies for the financial year 2009.

In 2011, the Company also implemented measures to sell shares in five subsidiaries in accordance with the plan approved by its Board of Directors to sell stakes in subsidiaries and the instructions given by the Russian government.

In particular, a 29.3918% stake in Open Joint Stock Company TransCreditBank was sold to VTB Bank as part of the first phase of the deal (the total cash received, including advances for the second stage, was 18.1 billion roubles).

In addition, 50% minus two shares in Open Joint Stock Company ELTEZA were sold to BT Signalling BV at a competitive auction for 2 billion roubles, and on 28 October 2011, an open auction was held for the sale of 75% minus two shares in First Freight, a subsidiary of Russian Railways. The winner, NTK LLC, paid 125.5 billion roubles for the stake and at present is receiving approval from foreign antimonopoly authorities to close the deal.

By the end of this year, Russian Railways plans to sell at public auctions 100% minus 1 share in Open Joint Stock Company Saransk Wagon Repair Plant, Open Joint Stock Company Refservis and Open Joint Stock Company Moscow Mechanical Engineering Works Krasny Put.

Lack of interest from potential investors meant that auctions for the sale of 100% minus 1 share in Open Joint Stock Company Petukhovsky Casting & Mechanical Plant, Open Joint Stock Company Ishimsky Mechanical Plant, Open Joint Stock Company TransVudServis, Open Joint Stock Company Alatyr Mechanical Plant, Open Joint Stock Company Vladikavkaz Wagon Repair Plant named for S. M. Kirov and Open Joint Stock Company NIITKD were declared void.

Work is currently being carried out in order to increase the investment attractiveness of these subsidiaries ahead of repeat auctions in 2012.

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