Moscow City is a cluster of skyscrapers on the banks of the Moscow River, home to the headquarters of major Russian companies as well as government ministries. Russian Railways planned to move its headquarters to a skyscraper and cover the purchase price with the sale of other office properties in Moscow, but this never happened.
The rest of the article below the video:
State Russian Railways, employing approximately 700,000. people have seen their incomes fall as a result of the sharp slowdown in Russia's war economy, while at the same time debt servicing costs have skyrocketed, driven by the highest interest rates in two decades. Russia's economy is expected to grow by 1%. this year, up from 4.3 percent. in 2024
The possibility of selling the skyscrapers was discussed at a government meeting last week, Reuters found. It was decided that Russian Railways should sell the skyscraper to repay part of the debt and avoid significant increases in freight prices.
See also: Russia will pay a high price for the war with Ukraine. Even after it ends
A 62-story skyscraper in Manhattan, Russia, is going under the hammer
Russian Railways was ordered to sell the building at a price no lower than the 2024 purchase price, which, according to the Russian newspapers “Kommersant”, “Vedomosti” and “RBC”, amounted to 193.1 billion rubles ($2.42 billion).
See also: Russia is tightening its belt. War spending stops working
No decision has yet been made on other measures previously discussed, including freight price increases, debt restructuring, state subsidies and tax cuts or deferrals, Reuters writes.
The agency determined that the option of converting part of the bank's debt into shares is still being considered.
Andrei Kostin, president of VTB, the largest lender to Russian Railways, told Reuters that creditors rejected a proposal to swap 400 billion rubles of debt for shares.
See also: A hit to Moscow's finances. Russia uses this money to finance the invasion
Source: Reuters
