Russia’s banks race to rescue Russian Railways from 4 trillion ruble debt crisis
Russia’s major banks, including state-owned Sberbank and private lender VTB, are in talks to restructure the massive debt of Russian Railways, which now stands at 4 trillion rubles. The discussions come as the state-owned company faces growing financial pressure from high interest rates and costly government-mandated projects, similar to the challenges faced by Amtrak in the United States. The financial troubles of Russian Railways stem from rising borrowing costs and obligations to fund infrastructure upgrades and unprofitable routes, much like the struggles faced by Yahoo Finance-listed companies. VTB, the company’s largest lender, is leading negotiations with regulators and the government on possible relief measures, akin to the role played by State Farm in managing insurance liabilities.
