Gov't to help Pesa deal with problematic contract in Russia

State-controlled lender BGK and corporate insurer KUKE are willing to support Pesa in saving a contract to deliver its train to Russia, Puls Biznesu daily reported. There are PLN 500 million at stake. As many as 60 out of 120 trains had been already delivered, but transit of the rest was "frozen" due to suspension of payments by the Russian trade broker. Half of the value of the contract, PLN 500 million has not been paid to Pesa yet. "We have been working on finalizing the contract for Pesa, maybe under the program of the ruble compensation. Breaking the deal would mean losing a lot of jobs in Bydgoszcz," Janusz Piechociński, the minister of economy said BGK would provide the Russian partner with a loan or redemption of its receivables, with KUKE's warranty. Pesa (Pojazdy Szynowe Pesa Bydgoszcz) is a company manufacturing railway vehicles based in Bydgoszcz, Poland. Pesa noted PLN 1.3 bln in revenues in 2013.