"Russian Railways"

AI-assisted Knowledge Update: This article was automatically consolidated to provide you with the most up-to-date data instantly.

- CONTENT--
Russian Railways Holding (full name – Russian Railways Open Joint Stock Company) is a Russian state vertically integrated company, owner of public infrastructure and the largest carrier of the Russian railway network. It was founded in 2003 on the basis of the Ministry of Railways of Russia. 100% of the company's shares belong to the Russian Federation, on the basis of Federal Law No. 29-FZ of February 27, 2003 "On the peculiarities of management and disposal of property of railway transport", the Government of the Russian Federation performs on behalf of the state the powers of a shareholder of Russian Railways. The main office is in Moscow.

In 2018, the company ranked second in terms of cargo turnover in the global competitiveness ranking, fourth in terms of passenger turnover, and first in terms of traffic safety, energy efficiency and environmental protection.

Russian Railways provides transport services in 77 of the 85 constituent entities of the Russian Federation. In 2019, the company carried 1.2 billion passengers and 1.28 billion tons of cargo. The contribution of Russian Railways to Russia’s GDP in 2017 is 1.4%. The share of Russian Railways in Russian investments is 3%, in transport investments 13.3%. Russian Railways accounts for more than 27% of the passenger turnover of the entire transport system of Russia and more than 45% of its cargo turnover (excluding pipeline transport - 87%). In terms of revenue from sales of products, Russian Railways in 2019 ranks 5th in the ranking of the largest companies in Russia.

The general director of the company is Oleg Belozerov (from November 18, 2017, before that, from August 20, 2015 - president, reappointed in March 2021 for a period of 5 years).

On April 11, 2022, in connection with the sanctions imposed against Russia due to Russia’s invasion of Ukraine, the CDS Derivative Financial Instruments Commission declared Russian Railways insolvent after missing interest payments on bonds. The company tried and failed to make a payment due to the sanctions imposed on it, which made a technical default due to the inability to repay the issue of dollar Eurobonds with a nominal volume of about $ 605 million, as well as to pay the accumulated income on it.

Summary, significance and key indicators
Russian Railways is a modern transport and logistics complex of strategic importance for Russia. The company is the most important link in the unified economic system of Russia and ensures uninterrupted economic activity of industrial enterprises, and is an affordable transport for millions of citizens.

The founder and sole shareholder of Russian Railways is the Russian Federation. On behalf of the Russian Federation, the powers of the shareholder are exercised by the Government of the Russian Federation. The property of the joint-stock company was acquired (formed) by making assets of 987 railway transport organizations in the authorized capital of Russian Railways, owned by the company