Ukrainian Railways pays USD 28 mln dividends from 2019 profit

Ukrainian Railways (RAILUA) paid UAH 750 mln (USD 27.6
mln) dividends to the government in line with its commitments on June 30, the
company reported the next day. This amounts to 30% of the company’s profit for
2019. The Cabinet of Ministers, the sole shareholder of the company, decided on
this dividend distribution on April 21, Ukrainian Railways reported. It won’t
pay any dividends based on its 2020 results, when the company reported heavy losses.

Alexander Paraschiy: The
Cabinet’s demand to charge dividends from the company which faces problems with
liquidity and barely escaped a technical default
in late May does not look logical. In any case, we expect the company will
continue to service its key debt obligations on time, and the government would
assist the company in case it faces any liquidity issues. All in all, we remain
neutral on RAILUA bonds.