The Italian company Finmeccanica and the Russian Railways have signed a memorandum of understanding on the creation of a joint venture to develop telecommunications, signaling, safety and automation technology for the Russian Railway.
This joint venture will develop and manufacture equipment for 50 railway lines, 100 vehicles and 100 railway stations by 2020. The estimated worth of the contract could be about 1.5 billion euros.
The work will be executed by Finmeccanica’s subsidiary Ansaldo STS, which will have a 49 percent share in the jointly owned new company. The Russian Railways subsidiaries Institute for Systems Automatization will have a 49% share and High-Speed Rail Lines will have a 2% shares.
Ansaldo STS’ spokesman Roberto Alatri said that according to the memorandum, Russian Railways will place five separate orders over the next five years all to be executed by 2020.