Founded under private law, the RAG Foundation regards itself as trustee of the public authorities in order to release them from the costs resulting from the RAG Corporation’s long-term responsibilities due to hard coal mining from 2019 onwards. As of December 31, 2012 calculations showed that the RAG Foundation will need assets of approximately 14.3 billion euros from 2019 onwards, so that the corresponding interest will cover the long-term responsibilities. An opinion by KPMG, rendered in 2006, had initially estimated this amount at 8.4 billion euros. The increase results from lower interest rates and increased prices.

The RAG foundation currently holds a stake of about 68 per cent in Evonik and owns additional investments worth about 2 million euros. In 2018 – after the subsidized coal mining will have been phased out according to the agreement signed in 2007 – RAG Corporation will transfer approximately 1.6 billion euros to the RAG Foundation.

Increase in capital stock

From 2019 onwards the RAG Foundation will use the income generated by its capital stock as well as dividends from Evonik to finance and permanently cover the coal mining’s long-term responsibilities.

Should the Foundation’s funds – against expectations – be insufficient to finance the long-term responsibilities at some point in time, the mining states of North Rhine-Westphalia and Saarland as well as the German Federal Government will, according to their commitment, provide the funds required to permanently cover the long-term responsibilities.