Rail­way com­pany’s plans to in­vest 35m eu­ros in Rus­sia crit­i­cised in Es­to­nia

Baltic News Network - - News -

Es­to­nian state-owned rail­way cargo com­pany EVR Cargo has voiced plans to bor­row and in­vest 35 mil­lion eu­ros in freight cars in Rus­sia, by buy­ing train cars from Rus­sian com­pany to lease them to Rus­sian firms.

Es­to­nian pub­lic broad­caster ERR re­ports cit­ing the daily Pos­timees that the 15-year in­vest­ment plan is for the EVR Cargo to buy 600 con­tainer flat­cars and 400 open wag­ons from a Rus­sian com­pany and they would then leases to large lo­cal com­pa­nies. EVR Cargo’s chief ex­ec­u­tive of­fi­cer Raul Toom­salu has eval­u­ated that the project does not have large risks: «In terms of busi­ness, this trans­ac­tion doesn’t come with any greater risks. That we lose our as­sets there is im­pos­si­ble».

Mean­while, for­mer Es­to­nian Min­is­ter of Eco­nomic Af­fairs, Kris­ten Michal, ar­gued against the plan.«If some­one had asked me about the idea to in­vest in the Rus­sian tran­sit busi­ness for 15 years, I most likely would have thrown them out of my of­fice,» com­mented Michal in­sist­ing the eco­nomic cli­mate in Rus­sia is en­tirely un­pre­dictable and there­fore en­tails in­vest­ment risks.

SXC

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