Germany's Siemens in multi-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.

The 2.2-billion-euro (2.8-billion-dollar) sale of regional trains 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.

Siemens chief executive Peter Loescher, who will be accompanying Merkel to Russia July 14 and 15, will sign the pre-contract with Russian Railways managers.

The company has dramatically expanded its business in the Russian railway sector.

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.

-- Dow Jones Newswires contributed to this report --

© 2010 AFP

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