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Jun 05, 2019

Russian, Belarusian and Kazakhstani railway companies sign agreement on stake in JSC UTLC EPA

The railway companies which are shareholders in the United Transport and Logistics Company - Eurasian Railway Alliance (JSC UTLC EPA) have entered into a shareholder agreement.

A document to that effect was signed today in Moscow by Oleg Belozerov, Chief Executive Officer and Chairman of the Board of Directors of Russian Railways, Vladimir Morozov, Head of the Belarusian Railways State Association, and Sauat Mynbayev, Chairman of the Board of Kazakhstan Temir Zholy NC JSC.

The agreement regulates the conditions for the participation of shareholders in UTLC EPA. It provides for a balance of interests between all the shareholders and establishes the conditions for the company’s effective functioning. In particular, according to the signed document, the company will be managed by the shareholders on a parity basis. Each shareholder has the right to delegate two representatives to the Board of Directors of JSC UTLC EPA.

During the meeting preceding the signing, the heads of the shareholder companies said that JSC UTLK EPA was an effective project and noted the joint-stock company’s significant contribution to the development of transit container rail traffic between China - Europe - China.

In 2015, 47,600 Twenty-Foot Equivalent Units (TEUs) were transported within the framework of the project, but in 2018 the figure exceeded 280,000 TEUs.

Plans for the current year also envisage a further growth in traffic. “The effectiveness of the UTLC project is one of the examples of effective cooperation in the space of the Eurasian Economic Union,” said Oleg Belozerov.

In April 2018, JSC UTLK was reorganised to established JSC UTLK EPA, which is the legal successor of UTLK JSC in terms of operating activities and the transportation of freight through Russia, Kazakhstan and Belarus as part of regular container trains from China to Europe.

The shareholders in UTLK EPA JSC hold equal shares.


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