Russian steelmaker Severstal has announced that it has completed the sale of its wholly-owned StalTrans railway unit in Russia to the freight railway operator Freight One.
The transaction includes the transfer of up to 70 percent of Severstal's cargo rail freight base and of Severstal's key mining subsidiaries Vorkutaugol and Karelskiy Okatysh over a five-year period. As part of the transaction, Freight One will also acquire 800 gondola cars from Severstal. The total consideration for the transaction is US$160 million.
Freight One is part of Russian steel billionaire Vladimir Lisin's transport group. Mr. Lisin also owns 85.5 percent of Russian steelmaker Novolipetsk Steel (NLMK).