OREANDA-NEWS. August 05, 2011. The Russian government has decided to sell 75% minus 2 shares of the First Freight Company in one lot at a public auction, reported the press-centre of Russian Railways.

According to Order 1315-r of the Government of the Russian Federation dated 28.07.2011, participants in the auction can be legal entities registered in Russia which are non-state corporations with a stable financial position and experience of operating railway rolling stock.

The final minimum sale price of the shares will be determined on the basis of a report by an independent appraiser no later than 30 days before the announcement of the auction.

"The sale of a controlling interest in the First Freight Company will become a key element in the reform of the freight side at Russian railways. As a result of this step, the market will see the appearance of the largest private player in the cargo sector, while Russian Railways will receive significant funds to finance its investment programme. The terms of the auction mean that we can expect a strategic investor to enter the industry who is interested not only in the commercial benefits, but also in the development of Russia’s rail system," said Russian Railways President Vladimir Yakunin.

The sale of shares in the First Freight Company is planned to take place before the end of 2011.

Applicants interested in acquiring the stake should obtain agreement to participate in the transaction from Russia’s Federal Antimonopoly Service.