Financial Services, Legislation, Lithuania, Railways, Transport

Transport and Communications Minister Paulius Martinkus said the decision to compensate the losses incurred by the state-run railway company from carrying passengers had been taken in spring of 2017.

"When the budget drafting was started in spring, the decision was taken to move in the direction to cover for special obligations from the budget, at the same time, Lietuvos Gelezinkeliai will be required to pay dividend. This is the practice from now on," Martinkus told BNS.

The 2018 state budget draft envisages 35.752 million euros for the railway company.

Mantas Dubauskas, spokesman for LG, said the losses incurred due to carrying passengers had not been compensated by the state until now.

"The burden of carrying passengers would not be shifted upon the state, the company would pay dividend. The state would even benefit," Dubauskas told BNS.

In his words, Lietuvos Gelezinkeliai posted 36.5 million euros in losses from passenger transport last year and 16.8 million euros in the first six months of this year (down from EUR 17.9 mln year-on-year).

For the January-June period, the company posted 4.22 million euros in net loss, up by 88% from the same period of 2016.