(Reuters) – Russian Railways, a key cog in Russia’s industrial machine, may substantially cut its spending next year by around 40% compared to 2024, the Interfax news agency quoted the company’s finance chief Tatiana Orlova as saying on Thursday.
Russian Railways is one of several firms struggling with Russia’s high interest rate burden. The company expects its interest payment costs to hit $7 billion next year, suggesting a rise of around $4 billion, a company document seen by Reuters showed last month.
Orlova said the company’s reduced spending would have an impact on the company and the whole chain of providers it works with.
The company’s investment plan for 2024 was approved at 1.275 trillion roubles ($12.50 billion).
The state-owned monopoly spends money purchasing rails and railcars, as well as building infrastructure, including expanding the BAM and Trans-Siberian railroads as Moscow aims to supply more fossil fuels to Asia.
($1 = 101.9955 roubles)
(Reporting by Gleb Stolyarov; Editing by Alexander Marrow and Franklin Paul)
