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Jun 19, 2015

Russian Railways and Siemens sign agreement for maintenance of Lastochka electric trains

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Russian Railways has signed a contract with the German concern Siemens for the maintenance and repair of 294 Lastochka electric trains. The agreement covers 54 trains manufactured in Germany and another 240 trains produced by a joint venture between CJSC Sinara Group and Siemens.

The document was signed by Vladimir Yakunin, President of Russian Railways, and Dr. Jochen Eickholt, Chief Executive Officer of Division Mobility at Siemens AG

The contract provides for services necessary for the operation and functionality of these Lastochka trains. Under the agreement, all services will be provided in the Russian Federation, for example, in a depot near Moscow or in Adler etc.

The contract has been concluded for 40 years and shall enter into force upon signature by both parties. If the actual annual mileage is 175,000 km for each of the 294 electric trains, the servicing cost will be 0.8 euros per train-kilometre (excluding VAT).

Payments under the contract will be carried out in roubles at the average exchange rate of the Central Bank of the Russian Federation in the month when the services were performed.

"Today's document shows that Siemens and Russian Railways intend to work for the next 40 years. In the current difficult economic and political situation in the world, this is a major achievement. The agreement also provides for combined payment in euros and roubles for the first time. As a result of our negotiations, the cost of servicing the trains has been reduced almost threefold," said Russian Railways President Vladimir Yakunin following the signing.

Yakunin added that the total value of the contract is about EUR 1.7 billion.

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