RZD's trust management of 50% Mongolian railway stake extended to 2020

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RZD's trust management of 50% Mongolian railway stake extended to 2020 - decree

MOSCOW. Sept 4 (Interfax) - Russian Railways (RZD) will continue trust management of 50% of shares in Mongolian national rail operator UBTZ until December 17, 2019, under a decree issued by President Vladimir Putin.

The September 4 decree has been posted on the official legal information portal.

UBTZ (Ulan Bator Railway) was formed on June 6, 1949 under an agreement between the Soviet Union and Mongolia. The company operates 1,800 kilometers of trunk rail lines.

In 2009, RZD received trust management of Russia's 50% stake in UBZT for five years in order to "improve the effectiveness of management" of the securities. UBZT accounts for about 80% of domestic rail freight turnover and up to 100% of Mongolia's export shipments.