RZD says purchase of Mechel's Elga rail road must be based on market valuation
MOSCOW. May 30 (Interfax) - The purchase by Russian Railways (RZD) of the rail road to the Elga coal field in Yakutia from Mechel must be based on a market valuation, RZD President Oleg Belozerov told Interfax.
"In the process of discussing the railway's future, we have said that it is possible to give a market valuation to this asset, to the risks, and on the basis of that draw conclusions on our readiness to get involved. We continue to move, guided by that logic," he said.
"They built the branch to their Elga field independently. That said, RZD has an interest in the cargo base," Belozerov said.
In December 2015, Mechel's leadership said that the company was maintaining plans to sell or transfer the Elga rail line to RZD, which "could more effectively manage, organize operation on this segment." At that time, Mechel CEO Oleg Korzhov emphasized that the company was ready to examine various options: sale of the rail line paid with installments or via a leasing company.
The 321-km rail line links the Elga coal field with the Baikal-Amur Mainline. Mechel built the rail line at a cost of 71 billion rubles.
