OREANDA-NEWS. October 19, 2007. Russian Railways expects to receive over 14.9 billion roubles from the sale of a stake in Elgaugol and property.

On October 2007, an auction was held in Moscow for the joint sale of property owned by Russian Railways (29.5% of the shares in Elgaugol and structures now under construction on the railway line between Ulak and Elga) and the Republic Investment Company set up by the Republic of Sakha (Yakutiya), which holds a 75% stake minus 1 share in Yakutugol and 39.4% of the shares in Elgaugol.

The Russian company Mechel Invest won the auction, with a bid of 58,196,308,385 roubles after a starting price of 47,396,308,385 roubles.

Russian Railways will receive 14,958,017,702 roubles, including 3,684,322,400.10 roubles, for a stake in Elgaugol, which is 814,952, 400.10 roubles above the starting price, and 11,273,695,302 roubles for the uncompleted facilities under construction.

Russian Railways has thus disposed of major uncompleted structures and non-core assets and freed financial assets invested between 1998 and 2002.

The purchaser is obliged to begin operating the 313-km railway line between Ulak and Elga no later than 30 September 2010, whose construction is provided for in the “Strategic Development of Russian Rail Transport up to 2030.“