Germany's Siemens in two-billion-euro Russian deal: source

13th July 2010, Comments 0 comments

German industrial group Siemens has won a major contract from Russian Railways to be signed during a visit by Chancellor Angela Merkel this week, government sources in Berlin said Tuesday.

Siemens chief executive Peter Loescher, who will be accompanying Merkel to Russia Wednesday and Thursday, will sign the 2.2-billion-euro (2.8-billion-dollar) accord for more than 200 regional trains.

The sources said that on the second leg of the trip, in China, German auto giant Daimler will seal a deal to expand its joint venture with truck manufacturer Beiqi Foton with a total investment by both companies of nearly 800 million euros.

Siemens could not immediately be reached for comment.

The train sale is the second major coup for Siemens in Russia this year.

In May, a joint venture between Siemens and its Russian partner OJSC Sinara Transport Machines won a contract for 221 trains worth 1.1 billion euros.

And last December, the Russian railway group RZD signed a 580-million-euro order for up to 54 Siemens regional trains for the 2014 Winter Olympic Games in Sochi, a few days after a high-speed train built by Siemens began service between Moscow and Saint Petersburg.

Russia's railway service operates more miles (kilometres) of track than any other country in Europe, Siemens said.

Merkel will be travelling with a high-level business delegation of 25 executives on the four-day trip, which will also take in Kazakhstan.

Siemens also has plans to work on the expansion of that country's rail network, the government sources said.

-- Dow Jones Newswires contributed to this report --

© 2010 AFP

0 Comments To This Article