OREANDA-NEWS. May 31, 2013. Sergei Pavlov, Managing Director of Russian Railways International, a subsidiary of Russian Railways, and Dragoljub Simonovic, Managing Director of Serbian Railways, have signed a contract to carry out the construction (reconstruction) of railway infrastructure and supply diesel trains.

The contract was signed in the Serbian capital Belgrade in the presence of Vladimir Yakunin, President of Russian Railways.

During a press conference following the contract signing, Vladimir Yakunin said:

"Strengthening bilateral and mutually beneficial cooperation with the railways of Serbia as part of the overall revitalization of economic cooperation between Russia and Serbia, with a state export credit provided by the Russian Federation, is a priority for us, not only at the moment, but also over the long term. Signing this contract is a major step in our relationship, which throughout our history has traditionally been friendly and based on trust. Today's event is a striking confirmation of that history."

The contract provides for the:

construction and electrification of 16 km of a second track on the Belgrade – Pancevo

railway line;

reconstruction of six sections with a total length of 112 km on Pan-European Corridor X;

reconstruction of the existing and construction of a new second new track on the 44 km section between Stara Pazova - Novi Sad;

reconstruction of the Serbian section of the Belgrade - Bar railway line with a total length of 200 km (Belgrade - Vrbnitsa);

supply of 26 diesel trains produced by Metrovagonmash OJSC (Russia).

Russian Railways International, a subsidiary of Russian Railways which specialises in implementing the Holding's infrastructure projects abroad, will carry out the work on behalf of Russian Railways.

The contract was signed as part of an agreement between the Russian and Serbian governments on granting the Republic of Serbia a state export credit in the amount of USD800 million.

The agreement was signed on 11 January 2013 at Russia's Ministry of Finance by Anton Siluanov, Russia's Minister of Finance, and Mladjan Dinkic, Serbia Minister's of Finance and Economy.