Decisions to attract lease financing are made by the Company based on the general principles of the debt policy taking into account IFRS approaches for assessing the level of financial debt.

Lease obligations as of the end of 2014 RUB 42.3 bln

Track maintenance equipment leased in 2014 for a total of RUB 22.8 bln

Lease payments in 2014 RUB 14.3 bln

The Company is currently implementing a programme called ‘Renovation of track maintenance equipment in 2012–2016’ using the leasing mechanism.

Following an open competition in 2012, a long-term lease agreement was concluded with VEB Leasing for the supply of track maintenance equipment manufactured by the Remputmash plant in Kaluga worth a total of RUB 90.6 bln including VAT in 2012–2016.

The track maintenance equipment supplied under the leasing agreement is being used for routine railway infrastructure maintenance work.

Track maintenance equipment worth a total of RUB 48.8 bln including VAT was leased in 2012–2014, or 54% of the total volume under the agreement, including track machinery worth a total of RUB 22.8 bln including VAT in 2014.

As of 1 January 2014, Russian Railways had total lease obligations of RUB 27.3 bln including VAT.

A total of RUB 14.3 bln including VAT was spent on lease payments in the reporting year.

Total lease obligations with maturity prior to 2024 amounted to RUB 42.3 bln including VAT as of 31 December 2014.

Financial lease obligations of Russian Railways in 2013–2014, RUB bln including VAT
Indicator 2013 2014
Balance at start of year 9.6 27.3
Incurrence of obligations 24.2 29.2
Repayment of obligations 6.5 14.3
Balance at end of year 27.3 42.3