OREANDA-NEWS. On August 25, 2009 Russia’s President Dmitry Medvedev has signed a decree "On the transfer of federally-owned shares in JSC Ulan-Bator Railways to the trust management of Russian Railways", reported the press-centre of Russian Railways.

As stated in the signed document, 50% of shares owned by Russia in Ulan-Bator Railways are being transferred to the trust management of Russian Railways for five years.

"In fact, Russian Railways has already started to participate in the development of Ulan-Bator Railways and is giving practical assistance in carrying out major track repairs, upgrading rolling stock and improving transport technology," said Vladimir Yakunin, president of Russian Railways.

According to Yakunin, the implementation of the "Concept for Implementing the joint Russo-Mongolian Development Project for JSC Ulan-Bator Railways and the Construction of New Rail Infrastructure in Mongolia, which was developed by Russian Railways experts, will enhance the efficiency of Mongolia’s domestic rail transport and its transit shipments.

The Joint Stock Company Ulan-Bator Railways was founded in 1949 as a result of an agreement between the governments of the USSR and the Mongolian People’s Republic, with each side holding equal amounts in the company’s share capital. Prior to this new agreement, Russia’s Federal Agency of Rail Transport exercised the Russian government’s powers as shareholder.