RZD TD, ABE Corp. set up JV to supply Kazakhstan with Russian railway equipment
MOSCOW. July 13 (Interfax) - OJSC Trading House RZD (TD RZD) and ABE Corporation of Kazakhstan have set up a joint venture for supplying Kazakhstan with Russian-made railway products, TD RZD said.
Founding documents were signed at the beginning of this month. TD RZD has a 51% share interest in the joint venture and ABE a 49% interest. The JV's charter capital is $300,000.
TOO Trading House RZD will be registered in Astana. The company will also be introducing designs by OJSC Russian Railways (RZD) subsidiaries and railway equipment producers. TD RZD Deputy General Director Anatoly Volodin has been appointed the chairman of the joint venture's board of directors.
Kazakhstan is the first country' in 1520 Space in which TD RZD has opened a joint venture, Volodin has said. In what other countries JVs are slated to open has not been announced.
ABE was set up in 2011 to carry out turn-key projects in the oil and gas, railways, and energy sectors. The corporation consists of twenty-one companies, including plants that make products out of concrete, crushed rock, and asphalt. ABE subdivisions operate in virtually all the biggest cities in Kazakhstan. The company has fulfilled contracts worth over $1 billion combined since 2011.
OJSC Trading House RZD was created in 1995, and was initially called OJSC Industrial-Financial Group Rosvagonmash. It is now the domestic representative of RZD and its companies, engages in the material and technical support of RZD subsidiaries, stockpiles and sells metal scrap generated by railway networks, and supplies RZD with new rolling stock. Company sales revenues came to 64 billion rubles and sales profits to 1.14 billion rubles last year.
RZD only owns 25% of the trading house's charter capital. According to the SPARK database, almost 11% of the company belonged to CJSC TransMashHolding (TMH) outfits (three plants outside Moscow, in Tver, and in St. Petersburg) at the beginning of the second quarter, 20% to CJSC VTB Specialized Depository, 18.1% to an NGO for stock-market development, 3.8% to Kurs-D LLC (Khimki, Moscow Region), 3.1% to OJSC Baltic Bank (Moscow), 1% to investment company Veles Capital LLC, and 23.2% to three other legal entities.
