If Russian Railways' profitability shrinks, the state company's investment program could be cut by RUB 75bn (approx. USD 2.73bn), a source in the Transportation Ministry said according to RBC. Total investment for 2009 was planned at RUB 411bn (approx. USD 14.96bn). According to the source, a financing shortfall would lower allocations for capital construction and acquisition of new rolling stock. Russian Railways' net profit is expected to be RUB 3bn (approx. USD 109.21m) in 2009.
Earlier today, Russian Railways said in its materials for the government meeting that its investment program could be cut 20 percent to RUB 388bn (approx. USD 14.12bn). Initially, the company's draft investment for 2009-2011 was based on the budget for 2008-2010 after a revision of financial performance targets, structural changes, and negative effects of the financial market turmoil. Therefore, the investment was planned at RUB 434.2bn (approx. USD 15.81bn) for 2009, at RUB 536.1bn (approx. USD 19.52bn) for 2010 and at RUB 624.3bn (approx. USD 22.73bn) for 2011.