Belarusian Railway

State Association «Belarusian Railway»

UNP: 100088574 · 17 Lenin St., 220030 Minsk

MonopoliesCity-formingHoldingsRestructuring

Identification

UNP100088574
OKEDrailway transport activities
Legal formState Association
Governing bodyMinistry of Transport and Communications of the Republic of Belarus
State share100%
Address17 Lenin St., 220030 Minsk

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets1 200 225968 939
Intangible assets13 7017 994
Investments in long-term assets33 53582 441
Long-term financial investments13 84913 856
Deferred tax assets38 32137 145
Long-term receivables8221 020
Other long-term assets30 201222 391
Total Section I (long-term assets)1 330 6541 333 786
Inventories4 7665 208
Deferred expenses161 007102 529
VAT on acquired goods, works, services85 88871 183
Short-term receivables1 793 0081 708 917
Short-term financial investments32 09141 780
Cash and cash equivalents72 88481 063
Total Section II (short-term assets)2 149 6442 010 680
BALANCE (assets)3 480 2983 344 466
Charter capital00
Additional capital319 286227 634
Retained earnings (uncovered loss)-328 623-233 922
Total Section III (equity)-9 337-6 288
Long-term loans and borrowings1 842 2561 567 518
Long-term lease liabilities392 014369 214
Отложенные налоговые обязательства011 814
Deferred income17 722172 235
Total Section IV (long-term liabilities)2 252 0862 120 899
Short-term loans and borrowings249 87362 085
Current portion of long-term liabilities324 020569 141
Short-term payables663 147515 220
— on lease payments225 678123 805
Deferred income50983 409
Total Section V (short-term liabilities)1 237 5491 229 855
BALANCE (equity and liabilities)3 480 2983 344 466

Computed metrics

Current ratio
1.737
f1_290 / f1_690 = 2149644 / 1237549
Absolute liquidity
0.085
Prior: 0.1
(F1.260 + F1.270) / F1.690
Own working capital ratio
-0.623
(f1_490 - f1_190) / f1_290 = (-9337 - 1330654) / 2149644
Sales profitability
0.279%
f2_060 / f2_010 = 98627 / 352915
Net profitability
-0.269%
f2_210 / f2_010 = -94948 / 352915
Revenue dynamics
0.4448%
(f2_010_current - f2_010_prior) / f2_010_prior = (352915 - 244279) / 244279
Debt dynamics
28.4%
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
F4.040 / F2.010 × 100%

Integrity checks

Checks passed: 1 of 6

Balance sheet balances (assets = liabilities)
Cash-flow integrity
Cash-flow residuals
Cash position
Capital transition
Profit consistency

Failed checks indicate gaps or inconsistencies in the source filing itself (typically in form F4, the cash-flow statement), not data-entry errors. The balance sheet (assets = liabilities) reconciles for every enterprise.

Signals

Red flags
  • Equity negative for the second year: −9.3m rubles against −6.3m a year earlierF1.490
  • Own working capital ratio −0.623 against the 0.15 norm — no own working capital; long-term assets are debt-financedF1.490 · F1.190
  • Net loss for the second year on record: −127.7m rubles (2022) → −94.9m (2023)F2.210
  • Accumulated uncovered loss grew from −233.9m to −328.6m rubles (+40.5%) — accumulation continuesF1.460
  • Financing-activity expenses of 669.0m rubles (+23.8%): exchange differences 487.0m + interest payable 115.9m (+78.6%)F2.130 · F2.132 · F2.131
  • Credit load +28.4% over the year: loans and borrowings 1,630 → 2,092m rubles; long-term +17.5%, short-term ×4.0 (62 → 250m)F1.510 · F1.610
Yellow flags
  • Current liquidity formally within the norm (1.737), but 83% of current assets is receivables of 1,793m rublesF1.290 · F1.690 · F1.250
  • Short-term lease payments within payables at 225.7m rubles — up 1.8× from 123.8mF1.636
Green signals
  • Revenue +44.5% year on year (244.3 → 352.9m rubles)F2.010
  • Sales profitability 27.9% — profit from sales of 98.6m rubles against revenue of 352.9mF2.060 · F2.010
  • Profit from sales grew 8.8× (11.2 → 98.6m rubles) while revenue grew 1.4×F2.060 · F2.010

Recommendation

Suggested outcome
Restructuring
Category
Distressed
Health score
0.73
Confidence level
Low

BZD (Belarusian Railway) is a natural monopoly over the railway infrastructure of the Republic of Belarus, a state association subordinate to the Ministry of Transport and Communications. Balance-sheet value BYN 3.48bn, 2023 revenue BYN 353m (+44.5% over 2022), a net loss for the second year on record (−BYN 94.9m in 2023). The picture diverges along two planes: operationally the business is healthy and improving (sales margin 27.9%, profit from sales grew 8.8×); financially it is critically weak (negative equity −BYN 9.3m, accumulated uncovered loss −BYN 328.6m, credit load (loans and borrowings, F1.510+610) +28.4% over the year, financing-activity expenses of BYN 669m of which exchange differences BYN 487m and interest BYN 116m).

Recommendation: Restructuring — financial, not operational. Restructuring of the debt portfolio and reduction of currency exposure, while preserving state ownership and operational continuity. Privatization of the infrastructure core is not applicable (a national-level natural monopoly); liquidation is not applicable (critical infrastructure).

Restructuring in the BNR 2.0 concept for BZD means:

  • Debt-portfolio restructuring — refinancing the BYN 1.84bn of long-term loans with the goal of lowering the interest rate (current interest of BYN 115.9m ≈ 6.3% of year-end long-term loans). Possible instruments: state guarantees, issuance of infrastructure bonds upon political stabilization, restructuring through state-participated banks on concessional terms.
  • Reduction of currency exposure — the bulk of the debt, on indirect signs, is FX-denominated (exchange differences produce a −53M effect on the net result). Restructuring toward local currency or hedging.
  • Preservation of operational continuity — no cuts to the network, services, or jobs. BNR 2.0 social protection (15% of shares / 80% of jobs) for BZD should be interpreted as a commitment to preserve all jobs in depots, hubs, and repair plants. Given the city-forming character for several cities — this is especially important.
  • State ownership is preserved — BZD is not in the privatization scope. This is consistent with international practice (DB, SNCF, ÖBB, JR — all mixed or fully state-owned).

Why restructuring. By the typological rule: monopolies primary → privatization and liquidation are struck out structurally. Restructuring + state investment remain. State investment is considered as a supplement but not the main recommendation, because operationally the business is healthy and growing without additional investment: revenue +44.5%, profit from sales ×8.8 over the year. The problem is not a shortage of capital for operations — the problem is in the structure of existing obligations (long-term loans of BYN 1.84bn + currency exposure lead to BYN 669m of financing-activity expenses against revenue of 353m). Injecting more capital without restructuring the old debt = aggravating the problem.

Confidence: LOW. The source is the 2023 annual report (FY-2, as of the 2026 pilot); the 2024 annual report is not yet publicly disclosed. Semi-annual 1H 2024 data (available in a separate file, P&L) is used as a directional indicator; the half-year figures are not stored in the card snapshot and do not enter the signals (the F1–F4 rule). Additionally: for state associations, F3 (changes in equity) and F4 (cash flow) are structurally absent from the public reporting — this is a feature of state-association reporting, not a data defect. Of the 6 cross-form sanity checks, 1 is possible (the balance equation — passed).

Belarusian Railway — BELSOE