03:08 GMT +316 July 2019
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    Russia's rail monopoly approves documents on $5 bln freight firm

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    MOSCOW, June 28 (RIA Novosti) - Russian Railways (RZD), the country's rail monopoly, has made a decision on establishing the first rail freight company with a market capitalization of at least $5 billion, a top government official said Thursday.

    The RZD board of directors approved June 28 a package of documents on the company's establishment.

    "Today, the board of directors has made a long-awaited and long-discussed decision on establishing the First Freight Company," said Alexander Zhukov, who is also chairman of the railway monopoly's board of directors.

    Zhukov said the rail freight company would be listed on the stock exchange by 2009, and that RZD would retain a controlling stake in the new freight carrier.

    At the same time, Vladimir Yakunin, the president of RZD, said the new company would receive about 200,000 rail freight cars in three stages -- 26% at the first stage, 65% at the second stage and the remainder by 2009.

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