MINSK, 23 October (BelTA) - Belarusian President Aleksandr Lukashenko has endorsed a proposal to provide state support to Belarusian Railways, Head of Belarusian Railways Valery Verenich told the media following a meeting between the head of state and the leadership of the Council of Ministers in Minsk on 23 October, BelTA has learned.
"The president has endorsed our proposals, which have been incorporated into the draft executive order [on state support for Belarusian Railways]. This places specific obligations on the team of Belarusian Railways and is designed to mobilize efforts across all fronts. There are a sufficient number of focus areas to achieve the results we are planning in the near future, and which we have outlined in our business plans,” Valery Verenich said.
Valery Verenich clarified that Belarusian Railways did not request new funding. The matter concerns an extension of the repayment period for the previously taken loans. “There is a specific amount that must be repaid within 5 years. This is a very heavy financial burden for us,” he said.
"The president has endorsed our proposals, which have been incorporated into the draft executive order [on state support for Belarusian Railways]. This places specific obligations on the team of Belarusian Railways and is designed to mobilize efforts across all fronts. There are a sufficient number of focus areas to achieve the results we are planning in the near future, and which we have outlined in our business plans,” Valery Verenich said.
Valery Verenich clarified that Belarusian Railways did not request new funding. The matter concerns an extension of the repayment period for the previously taken loans. “There is a specific amount that must be repaid within 5 years. This is a very heavy financial burden for us,” he said.
The issue is that while the railway transportation operations are currently profitable, the profit is insufficient to cover all obligations for loans taken out earlier. “We asked to extend the repayment deadline by another 5 years, until 2035,” Valery Verenich stated.
Consequently, the financial burden of loan repayment will be reduced, and the freed-up funds can be channeled into repairs, infrastructure, and development. The loans were initially taken out to purchase rolling stock and for electrification, major infrastructure projects. “By investing in production, we understand that we can generate further earnings,” he noted.
During the meeting the president noted that Belarusian Railways is one of the most important enterprises not only in the transport sector, but in the entire country as a whole. He stated that due to sanctions and also the situation in Ukraine, where several Belarusian freight trains were literally seized and held in a pirate manner, freight flows had to be redirected, new logistics had to be built, and overall mobilization was necessary. Although revenues have declined, Belarusian Railways transportation activities remain profitable overall.
“As I have been informed, the company's current financial situation is burdened by high debt servicing costs for loans taken out for infrastructure projects and the purchase of new rolling stock,” the head of state noted.
In order to stabilize the situation, a n executive order on government support for Belarusian Railways has been drafted. Simultaneously, Aleksandr Lukashenko recalled that the Belarusian Railways employees are not exactly ‘the poorest of people’. This is especially true in light of the facts uncovered by law enforcement agencies, which resulted in a number of officials from this sector being sent behind bars some time ago.
The president also outlined a general fundamental approach to providing government support across any sector. The head of state emphasized relying more on internal reserves rather than budget subsidies, so as not to come back "with a begging bowl" again after some time.
“Once again, I am warning you publicly: stop coming here for money. Stop. We have personnel, competencies, and in this case, trains, cars, planes, helicopters, and so on. Put them to good use,” Aleksandr Lukashenko.
Consequently, the financial burden of loan repayment will be reduced, and the freed-up funds can be channeled into repairs, infrastructure, and development. The loans were initially taken out to purchase rolling stock and for electrification, major infrastructure projects. “By investing in production, we understand that we can generate further earnings,” he noted.
During the meeting the president noted that Belarusian Railways is one of the most important enterprises not only in the transport sector, but in the entire country as a whole. He stated that due to sanctions and also the situation in Ukraine, where several Belarusian freight trains were literally seized and held in a pirate manner, freight flows had to be redirected, new logistics had to be built, and overall mobilization was necessary. Although revenues have declined, Belarusian Railways transportation activities remain profitable overall.
“As I have been informed, the company's current financial situation is burdened by high debt servicing costs for loans taken out for infrastructure projects and the purchase of new rolling stock,” the head of state noted.
In order to stabilize the situation, a n executive order on government support for Belarusian Railways has been drafted. Simultaneously, Aleksandr Lukashenko recalled that the Belarusian Railways employees are not exactly ‘the poorest of people’. This is especially true in light of the facts uncovered by law enforcement agencies, which resulted in a number of officials from this sector being sent behind bars some time ago.
The president also outlined a general fundamental approach to providing government support across any sector. The head of state emphasized relying more on internal reserves rather than budget subsidies, so as not to come back "with a begging bowl" again after some time.
“Once again, I am warning you publicly: stop coming here for money. Stop. We have personnel, competencies, and in this case, trains, cars, planes, helicopters, and so on. Put them to good use,” Aleksandr Lukashenko.
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