"This is not a major amount, even if we paid 80% of the profit. The state is not willing to co-finance the most important projects. If the state budget does not envisage co-financing, the railway (company) must allocate its own funds," Transport and Communications Minister Rimantas Sinkevicius told journalists after the government's meeting on Monday.
The Cabinet of Ministers on Monday gave the initial backing to the LG dividend, with the final approval expected on Wednesday. The company will pay a far lower dividend due to implementation of Rail Baltica and other projects of state significance.
Under a governmental resolution, dividends of state-run companies must amount to 80% of their retained earnings, however, they can be reduced by government's decision.
The company last year netted a consolidated profit of 5.076 million euros, which indicates a drop by a factor of 3.8 from 2014, while consolidated income fell 8.4% to 431.067 million euros.
