Siemens, OAO Russian Railways to Sign $2.8 Billion Regional Trains Deal
Siemens AG, the German maker of the ICE high-speed train, is poised to clinch a 2.2 billion-euro ($2.8 billion) order from Russia for 240 regional trains, as Prime Minister Vladimir Putin works to upgrade infrastucture.
The Munich-based company will sign a memorandum of understanding on July 15 with OAO Russian Railways for delivery of the trains in the next decade, Siemens spokesman Marc Langendorf said. The company will sign the accord during a visit by German Chancellor Angela Merkel to Russia and China.
Russia’s government in 2008 approved a railway development program allowing the Russian railway company to invest about 380 billion euros by 2030 to modernize rolling stock and the track network, the world’s second-largest.
The trains will be a version of Siemens’s Desiro regional model already sold to Hungary’s state railway and London’s Heathrow Express service. The trains will partly be made in Russia, Langendorf said.
To contact the reporter on this story: Tony Czuczka in Berlin at aczuczka@bloomberg.net Richard Weiss in Frankfurt at Rweiss5@bloomberg.net
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