OREANDA-NEWS. Severstal, one of the world’s leading steel and steel related mining companies, announces that it has completed the sale of its 100% stake in StalTrans to the freight railway operator Freight One.

The transaction carried out via Severstal’s subsidiary includes the transfer of up to 70% both of Severstal’s cargo rail freight base and that of Severstal’s key mining subsidiaries Vorkutaugol and Karelskiy Okatysh over a five year period. As part of the transaction Freight One will also acquire 800 gondolas from Severstal.

The total consideration for the transaction is USUSD 160 mln.

Denis Pavlyuchenkov, Purchasing and Logistics Director of the Severstal Russian Steel division, said: “Transportation is non-core business for Severstal. This deal will ensure that the Company’s transportation is reliable and deliveries are guaranteed. It will also improve the efficiency of work with rolling stock on the approaching lines to Severstal’s operations and will give us tighter control over transportation costs”.

“The transaction was carried out as a part of Freight One’s strategy to build long-term relations and enhance industrial and commercial integration with our key clients. The five-year agreement will also allow us to strengthen the Company’s logistical advantages in key Russian regions”, – said Oleg Bukin, CEO of Freight One, commenting on the deal.