VTB Bank has signed a master agreement with Russian Railways to provide RUB 10bn in bank guarantees following an open tender. Under the terms of the agreement, VTB provided a bank guarantee to the Moscow Metro State Unitary Enterprise as collateral for Russian Railways’ obligations to launch public transit services on the Smaller Moscow Belt Railway.
Gurinder Nihal, Head of Transaction Banking and VTB Senior Vice President, said: "VTB has a long and successful track record of working with Russian Railways, providing it with a full range of transaction products and services from settlements to bank guarantees. The solutions we offer enable the company to reduce risks related to its contracts, better manage its financial flows and optimize business processes. We are delighted that VTB products are enabling Russian Railways to implement large-scale socially responsible projects. said.
Russian Railways was established by the Russian Government in September 2003 as an open joint-stock company. The Russian Federation is the sole shareholder of the company.
Russian Railways operates one of the largest transport systems in the world with a total track length of 85.2 thousand km. Russian Railways accounts for 85.5 percent of the total cargo turnover in Russia (excluding pipeline transport) and 31.5 percent of the passenger turnover.