Sources say the Russian government has told Russian Railways to sell a 62-story skyscraper in central Moscow to help the company pay off part of its $50 billion debt.
This comes as officials consider ways to help one of Russia’s biggest employers, Reuters reported earlier.
Russian Railways, with about 700,000 workers, has seen profits drop as the wartime economy slows and borrowing becomes expensive. The possible sale of the Moscow Towers, part of the Moscow City area, was discussed at a government meeting last week, according to someone present who spoke anonymously because the topic is sensitive.
The decision was made to have Russian Railways sell the skyscraper to lower its debts and prevent big increases in cargo prices, three sources confirmed.
One person said Russian Railways can’t sell the building for less than what they paid for it in 2024. News outlets like Kommersant, Vedomosti, and RBC reported the price at 193.1 billion roubles ($2.42 billion).
Neither Russian Railways nor government people got back to us for comment.
Selling it could help their financial problems if they find a buyer while the economy struggles. Growth is expected to be 1.0% this year, much lower than 4.3% in 2024.
One source said officials have not decided on other ideas raised earlier. These include raising cargo prices, changing the debt, getting government funding, and adjusting tax payment timing.
The person said they’re still considering converting some of the bank loans into company shares.
The source said that Russian Railways, the Ministry of Finance, and the Central Bank need to review this idea for up to 3 years.
Andrei Kostin, who runs VTB, a big lender, told Reuters that the lenders turned down a plan to turn 400 billion roubles of debt into shares.
Moscow City is a group of tall buildings by the Moskva River where big Russian companies like VTB Bank and government offices are located.
Russian Railways wanted to move its main office to the building and pay for it by selling other offices in Moscow, but those plans were stopped. People will be watching who buys the skyscraper, including investors, employees, lenders, and those in positions of power, as Russia faces growing financial problems.
