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