Responsible company

Tax policy

We calculate and pay all applicable taxes, insurance fees, levies and charges required by the Russian laws, in particular VAT, corporate income, property, land, and transportation taxes, insurance fees, MET and others.

The Company adopted the Declaration on Tax Strategy Objectives and Principles (Tax Strategy)Approved by Russian Railways’ Order No. 1309/r dated 15 June 2021., which is in line with the Russian Railways Group’s values, mission, strategic priorities, and growth targets. We update the provisions of this Declaration as the overarching strategic priorities and development objectives of either the Company or the Group evolve.

Principles underpinning our tax strategy

Taxpayer’s good faith

The Company complies with all tax laws and pays all applicable taxes and levies on time and in full, as well as files tax returns and other documents in a timely manner.

Tax disclosure

We disclose tax information in accordance with the laws of our countries of operation and international treaties.

Higher tax transparency

The Company takes measures to enhance tax transparency, including through tax monitoring to ensure accurate calculation and timely payment of taxes, levies and insurance fees.

Tax risk management.

The Company uses a comprehensive system to identify and manage tax risks.

Consistency of tax accounting methodology.

Russian Railways develops and sticks to uniform approaches to taxation to ensure the consistency of tax accounting and fair presentation of taxes in its reporting. The Company mitigates tax risks among other things by requesting clarifications from relevant government agencies and reasoned opinions of tax authorities as part of tax monitoring.

Tax burden planning

The Company has a tax planning system in place to have tax authorities informed of planned tax accruals and to ensure the complete and timely payment of taxes and levies. The Company collaborates with the Russian government agencies to determine a fair tax burden on the rail transportation industry.

Due diligence and mitigating risks of unjustified tax benefits

Russian Railways exerts every effort to stay within the limits as regards the right to determine tax base and calculate taxes when entering into transactions with its counterparties. The Company’s internal controls and procedures serve to mitigate tax risks.

Tax function automation and digitalisation

Russian Railways seeks to improve its tax management processes by means of continuous automation and digitalisation.

Taxes and insurance fees paid in 2024

The total amount of taxes and insurance fees accrued in accounting statements for 2024 stood at RUB 382.8 bn, including:

• RUB ‑21.7 bn owed to the federal budget;
• RUB 163.1 bn owed to the regional and local budgets;
• RUB 241.4 bn owed to extra‑budgetary funds.

In 2024, a total of RUB 390.1 bn was allocated towards the payment of current taxes and insurance fees (including refunds), comprising:

• RUB ‑21.2 bn to the federal budget;
• RUB 152.5 bn to the regional and local budgets;
• RUB 258.8 bn to extra‑budgetary funds.

Sustainable financing

Funds raised through green financing instruments are allocated to finance and/or refinance, in whole or in part, the Company’s expenditures on qualifying green projects. These include procurement of eco‑friendly transport, infrastructure development for clean‑energy vehicles, and emissions reduction initiatives.

According to the Social Financing Framework, proceeds from social financing instruments are to be used to finance social projects in the following areas:

• developing railway infrastructure and ensuring transport accessibility;
• ensuring affordable healthcare;
• ensuring affordable education;
• other social projects.

The Company has implemented the following frameworks:

• Russian Railways’ Green Financing Framework;
• Russian Railways’ Framework For Financing Sustainable Development Projects;
• Russian Railways’ Social Financing Framework.