×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Freight One Sale to Be 'Pivotal' in 2011

The Economic Development Ministry says a controlling stake in the Russian Railways unit could go to investors.

Russian Railways’ sale of a holding in its Freight One unit will probably attract industry investors in one of the biggest infrastructure disposals of 2011, Deputy Economic Development Minister Stanislav Voskresensky said Friday.

The government's upcoming sale of state assets, dominated by interest in oil producer Rosneft, should also lure suitors for Freight One who seek earnings growth from cargo transport, Voskresensky said in an interview.

The division is valued by consultants at $4 billion to $5 billion, and a controlling stake may be offered, he said.

“The most pivotal sale of the next year will be Freight One’s, as the world hasn’t seen such sales for a very long time,” Voskresensky said.

The government may raise 600 billion rubles ($19.4 billion) to 883 billion rubles in state-asset sales from 2011 through 2013, Economic Development Minister Elvira Nabiullina and Finance Minister Alexei Kudrin said in July.

In addition to stakes in Russian Railways, its Freight One and Transcontainer cargo units, and Rosneft, disposals may include banks and operators of ships or pipelines.

“Politically, all are interested in whether Rosneft’s sale goes forward,” Voskresensky said. “There will be different audiences: Rosneft is interesting to portfolio investors” while the Freight One sale will be of more interest to “serious funds that want to come in for the long term, infrastructure funds and strategic investors.”

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more