RZD Board has approved the draft package of documents to create the Second Cargo Company (VGK), a subsidiary freight transport company.Vitaly Evdokimenko, Senior Advisor to the President of RZD, said at a Board meeting that VGK is being created as an open joint-stock company, a new legal entity according to the laws of the Russian Federation.

RZD will have 100% minus one share in its authorized capital, and a non-profit company Zheldorreforma will own one share.

Vladimir Yakunin, President of RZD, said that the decision has been made despite the fact that the government is still discussing the reform of Russian railways. He added that, in terms of creating VGK and its activity, these discussions will not change basic elements and are unlikely to bring any "extraordinary" changes to the whole system of work.

"This positive decision has been taken today, in order to be in line with the company creation timelines, which were approved by the RF Government and the last year's final Company Board Meeting. As a result of the discussion, the draft will be supplemented by at least three more articles and presented to the RZD Board of Directors,” Yakunin said.

Inga Dmitrieva